Business Daily (Nairobi)
Githua Kihara
10 July 2009
The government has imported another 1.2 million bags of subsidised fertiliser worth Sh2 billion to be used during the short rains season to mitigate against looming food shortage as a result of dry spell expected to prolong to August, this year.
The consignment of Diamonium Phosphate (DAP), Mono Ammonium Phosphate ( MAP) and Urea from US is expected to be used during the planting season in regions that receives short rains this period.
It will also benefit farmers in the 40,000 acres under irrigation in Tana River, Nyando, West Pokot and Turkana districts, the Minister for Agriculture, Mr William Ruto, has said.
"The imported fertiliser will help in moderating the prices which were last year controlled by a cartel that made the cost to rise to Sh6,000 per 50 kilogramme bag, leading to poor use and subsequent food shortage," Ruto said.
Since the government started the subsidised fertiliser programme last October, a 50 kilogramme bag has been retailing at less than Sh3,000.
The subsidised fertiliser, according to the minister, has been selling at Sh2,500 for a 50 kilogramme bag but the prices could go down if the discussion going on between the Ministry of Agriculture and that of finance yield fruits.
Kenya mainly depends on imported fertilisers and the entire agricultural industry requires about 450,000 metric tonnes a year.
But some agricultural industries such as horticulture are able to make their own fertilisers and do not rely on the import programme.
Last year when the prices of the fertilisers skyrocketed, Mr Ruto had accused suppliers of raising prices and suggested that the government consider other alternatives of regulating the prices.
Since the programme started last year, the government has imported over two million bags of fertiliser which was distributed to farmers across the country.
Another consignment of the Calcium Ammonium Phosphate used for top dressing is expected to arrive in the country, the NCPB regional manager, Mr Andrew Leng'uro said.
"We shall use these fertilisers to compliment what the private sector has so that the prices can be fair," Dr Romano Kiome , the agriculture PS said in an earlier interview.
The government early this year also received fertiliser worth Sh350 million from Japan as grant, which boosted the government supply.
The fertiliser was also sold to farmers at market prices and the proceeds will be channelled to development of agricultural sector in the resource constrained areas, Kiome said.
Kenya Sugar Board (KSB) intention to use a similar programme for sugarcane farmers through the Sugar Development Fund was temporarily stopped.
Two farmers challenged the board decision in court and asked that the decision to solicit tenders for fertilisers be quashed. They argued that procurement of the fertiliser would reduce the amount of money available under the fund for financing millers for cane development and maintenance.
The Sh500 million to be provided by Treasury will also be used to develop seeds for alternative crops that will be provided to farmers to diversify food production in the country.
The country mainly relies on maize, which leads to serious food shortage whenever there is a crop failure.
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