Fertiliser Association of Malawi says it foresees a “significant” increase in fertiliser prices due to the disruption of shipments through the Strait of Hormuz following the US-Israel war on Iran.
Due to the disruptions in the Middle East, international nitrogen fertiliser prices have reportedly risen by between 50 and 60 percent while phosphate fertilisers have increased by approximately 20 to 25 percent.
The association’s executive administrator Hannah Makhambera said in an interview on Sunday that there are also fears that if the war prolongs, there could be scarcity of the product.
She was responding to questions on the potential impact of the war on fertiliser prices and availability this year.
Makhambera said it is difficult at the moment to forecast fertiliser prices in the coming months.
In a written response, she said: “These developments are likely to have an impact on the cost of fertilisers imported into Malawi. Of all the routes that our members use, this one is also a very important one.
“Unfortunately, this disruption is not only affecting the price of commodities but also the fuel supply from Gulf countries, which is affecting sea freight and making it more expensive. We are monitoring the situation and our members will take prudent steps before they go to the international market to procure fertilisers for Malawi.”
In the meantime, fertilier prices in some outlets in the country have reached about K180 000 per 50 kilogramme bag. This means that if the international price increases are reflected on the local market, the price could fetch more than K200 000.
Meanwhile, a new local fertiliser manufacturing company owned by businessperson and philanthropist Napoleon Dzombe has suspended the start of operations scheduled for this April because raw materials are stuck in the Middle East due to the same conflict.
The plant, located in Dowa District, is projected to produce up to 40 metric tonnes per hour.
Dzombe said in a phone interview that he will have to wait until the raw materials arrive.
“We were expected to ship the required raw materials this month to start production, since fertiliser is made from different compound materials, but that has been suspended,” he said.
Another company, Rural Development Investment Initiative Trust (Rudevit), says it is running production tests because it uses local materials to produce its granular organic fertiliser.
Rudevit executive chairperson Hastings Bofomo Nyirenda said the factory is in Chileka, Blantyre ans supply can begin by May this year.
He further said the plant can produce 25 000MT per year.
Malawi requires about 470 000MT of fertiliser every year, including quantities distributed through the Farm Inputs Subsidy Programme.
When asked about possible alternatives amid a potential price increase of the commodity, Minister of Agriculture, Irrigation and Water Development Roza Mbilizi referred the query to the ministry’s spokesperson Salome Gangire, who asked for more time to respond.
Meanwhile, as the conflict continues, US President Donald Trump has urged the United Kingdom and other nations to send warships to the Strait of Hormuz to help secure the world’s key oil shipping route.
