Farmers panic as fertiliser prices continue to rise

As fertiliser prices continue rising with a 50-kilogramme bag now selling at K65 000, Farmers Union of Malawi (FUM) has warned that the increase would have serious implications on productivity and production of most crops.

FUM chief executive officer Jacob Nyirongo in view of the recent rise in fertliser prices effected by some fertliser companies fears that farmers may reduce fertiliser usage, a development which ultimately affects the economy which is agro-based.

According to the new price structure as effected by some agro-shops, Urea is now fetching K65 000 while CAN and NPK arenow selling at K63 000 and K64 000 respectively.

Nyirongo has since indicated that the average smallholder farmer in Malawi may not afford the new prices which will have a direct effect on several sectors of the economy.

“Most farmers in Malawi are poor and it’s quite a struggle to access fertilizer even at last year’s prices. So, the increase that we have seen recently will even push more farmers to a bracket where most farmers won’t be able to access fertilizer.

“Poor performance of the agriculture sector will have knock on effects throughout the economy including reduced foreign exchange earnings, food insecurity and hunger among others,” he said in an interview on Wednesday.

Already, Malawi is facing hunger as this year’s first round crop estimates show a 14 percent drop from last year’s.

This year the country is expecting to harvest over 3.8 million MT, against the annual food requirement of about 2.9 million MT for consumption.

Last season maize output was estimated at 4 581 524 MT.

In the 2020/21 agriculture season final crop estimate, maize production was estimated at 4 581 524 MT, while for the 2019/20, maize production was estimated at 3 785 712 MT.

Agriculture expert Leonard Chimwaza in an earlier interview with Business News also observed that Malawi soils have lost fertility; hence, the need for supplementation of nutrients in order to achieve optimum crop growth.

“On the other hand, the economy is agro-based and it is important to make sure that the agriculture calendar is well observed and supported accordingly to avoid man-made hunger,” he said.

But Fertiliser Association of Malawi executive administrative officer Mbawaka Phiri has said the rising fertiliser prices are likely to continue as transportation and forex issues remain an issue for the fertiliser industry. 

“Forex availability is the biggest problem. Of those companies that have been able to bring in some stock, they have only been able to get it based on the long term relationships they have with international suppliers.

“However they are obtaining this stock at a higher cost because Malawi is now being seen as a high risk country due to the lack of forex. This may also cause local retail prices to continue to be high even when international prices start to fall,” she said.