Harare — The Ministry of Finance says it is co-ordinating the purchase of farming inputs for the 2010/2011 summer cropping season, with seed and fertiliser suppliers yesterday confirming their readiness to meet demand.

The total amount set aside so far is believed to be in the region of US$10 million.

The figure, analysts said, falls far short of the financing the sector requires if agriculture is to contribute meaningfully to the national economy.

However, it is understood that Government has doubts that local manufacturers will be able to supply adequate fertilisers at affordable prices and will soon start imports.

Finance Minister Tendai Biti was not reachable for comment yesterday, but a senior official in the ministry said Treasury was directly paying local and foreign suppliers and manufacturers.

It is also understood that there is a tussle between the Finance and Agriculture, Mechani-sation and Irrigation Development Ministries over how inputs should be procured.

Sources said the Agriculture Ministry wanted Treasury to give them the money so that they co-ordinate any purchases and distribution as per their mandate, while the Finance Ministry has said it will buy and hand over purchases to the former.

Yesterday, Agriculture Minister Joseph Made said he would only comment on Government's preparations for summer cropping tomorrow. The matter is likely to be discussed by Cabinet today.

A Finance Ministry source said: "There is money but people are not using it. It is sitting in our banks. The ministry has now resorted to buying inputs like fertiliser directly from the suppliers. "We have more than enough in terms of seed this season. The local fertiliser manufacturers have also indicated that they have produced up to a million tonnes.

"It is our belief, however, that the figure is a bit ambitious," he said, adding that their estimates were in the region of 380 000 tonnes of locally produced fertilisers. Chemplex boss Mr Misheck Kachere, whose firm is one of three major fertiliser manufacturers, insisted they were geared to meet demand and did not see the need for imports.

"So far we have 80 000 tonnes of fertilisers in the warehouses . . . We are producing between 20 000 and 25 000 tonnes of basal and top-dressing fertilisers per month," he said. Organic fertiliser producer Nico Orgo Fertilizers sales and marketing director Mr John Chimedza said his company was going to release over 20 000 tonnes of the commodity for the summer farming season.

"At the moment we are producing basal fertilisers and we are releasing 5 000 tonnes a month but this can be doubled if we start running on double shifts," he said. Seed suppliers were also confident of meeting local demand.

Pioneer Hi-Breed Zimbabwe spokesman Mr David Makasi said: "We are releasing more than 7 000 tonnes of seed this year and using the 25kg per hectare planting rate, the seed is enough to cater for 280 000 hectares." Seed Co Zimbabwe said it was working on hybrid seeds that are drought resistant.

Sales and marketing manager Mr Ivan Craig said his company had 25 000 tonnes of maize seed in stock. "We are targeting to release 40 000 tonnes of the seed on the market," he said. However, the banking sector is still tight-lipped on what kind of support - if any - it will give farmers for the coming season.

Prominent farmer and analyst Mr Jonathan Kadzura yesterday said a system should be put in place where A1 and communal farmers receive free inputs. "Government should ensure that there is sufficient money in banks for onward lending to A2 and commercial farmers."

The prices of fertilisers, he said, should be competitive to enable farmers to access them. "Government should have subsidies in place. Every time Government comes to us for maize they say that our produce is expensive compared to imports," he said.

He said other governments actively supported their farmers and that is why their produce was cheap. Fertilisers are selling for around US$30 in Zimbabwe compared to US$5 in countries like Malawi where subsidies are in place.

The subsidies have also seen these countries producing bumper maize crops. The European Union and United States provide subsidies worth billions of dollars to their farmers annually, making it possible for them to produce and sell cheaply and consequently driving down global prices.

Last month, President Mugabe urged Zimbabweans to put their heads together and come up with a planned agricultural financing strategy to enhance productivity.

Officially opening the 100th Edition of the Harare Agricultural Show, President Mugabe said financial support for agriculture remained a "sore" challenge.

Despite the availability of such facilities as the US$210 million seed scheme and US$55 million Government inputs programme, the 2009/2010 farming season was chaotic. Inputs were not availed on time while poor rainfall worsened the situation.