Polokwane — Petro-chemical giant Sasol has been challenged to make up to farmers for colluding on fertiliser prices.

The Competition Tribunal has sanctioned a R250.68-million fine against Sasol Nitro for price collusion.

"These actions are the ones that push food prices so high because farmers cannot feed the nation without fertilisers as inputs," said Limpopo MEC for Agriculture, Rural Development and Land Administration, Dipuo Letsatsi-Duba on Tuesday.

She was presenting her department's R1.185 billion budget in the provincial legislature.

MEC Letsatsi-Duba suggested that Sasol match their fine by donating fertiliser consignments worth the same amount to farmers for the next three years.

She is also concerned about the effect of electricity supplier Eskom's planned tariff hike on farmers, especially irrigation farmers and those involved with agro-processing.

She urged the private sector to partner with government and co-fund and support food production programmes that focus on food security and poverty alleviation.

This year, the department has budgeted R662 million to support and develop farmers so they can survive the global economic slump.

"We thus need tough, innovative and creative agri-business entrepreneurs to match the new risks faced and make a mark and compete with the best in the world," said MEC Letsatsi-Duba.

She said it was encouraging, however, that the demand for food remained strong and that the demand for fresh produce and basic food items was expected to remain high despite the recession.

The department's main focus this year will be rural development, food security and land reform, the MEC said.

An Agriculture Indaba will be held in the province before the end of August where a Limpopo Agricultural Revival Plan is expected to be drawn up.

MEC Letsatsi-Duba said the department was determined to spend its entire budget this year - for the first time in four years.