12 September 2017

Tanzania: Dar Saves 11 Billion Under Fertiliser Bulk Procurement System

TANZANIA has saved over 11bn/- in the importation of 55,000 tones of Di-Ammonium phosphate (DAP) and Urea fertilisers under the Bulk Procurement System (BPS).

The Tanzania Fertiliser Regulatory Authority (TFRA) employees were busy yesterday, overseeing the clearance of the 23,000 tones of DAP fertiliser at Tanzania Port Authority (TPA) ahead of the other 32,000 tones of urea.

TFRA acting Executive Director Lazaro Kitandu said the cargo was imported using two ships from Morocco, noting, however, that the fertilisers were not subsidised, as some farmers might think.

He said in the absence of BPS, the DAP consignment would have cost 450 US dollars (over 1m/-) per tone, but under the system, the product cost only 348 dollars (over 780,000/-) per tone, saving 102 dollars (over 230,000/-) per tone.

He further said the price of Urea was up to 340 US dollars but under bulk procurement, the authority has imported the product at only 254 dollars per tone.

In the importation of 23,000 tones of DAP and 32,000 tones of Urea, the country has saved 5.3bn/- and 6.2bn/-, respectively, bringing the total saving to 11.5bn/-.

Mr Kitandu proposed the distribution of the imported fertilisers through the railway lines wherever applicable for farmers to experience world market price relief.

He said, like fuel, fertilizers' price will be determined by the distance from the Dar es Salaam port, hinting that the product indicative prices will vary from one region or district to another. Dar es Salaam, Dodoma and Arusha farmers will get

prioritiesDAP fertiliser at observed price of 60,750/- per 50kg bag while the same quantity of Urea will be sold at 51,500/-, according to TFRA indicative prices.

But, Kigoma farmers will purchase the same quantity of DAP and Urea at indicative prices of 63,000/- and 48,000/-, respectively as their Lindi counterparts get the inputs at 90,000/- and 66,500/-, respectively.

DAP and Urea will be sold at 61,317/- and 46,350/-, respectively, to Njombe farmers. TFRA indicative price list shows that in Kilimanjaro DAP and UREA will sell at 62,217/- and 46,000/-, respectively, while in Coast farmers will part with 49,464/- and 37,000/-, respectively.

In Iringa, the prices are 60,182/- and 43,875/-. The observed prices of DAP and Urea for Ruvuma farmers are 64,250/- and 47,000/-, respectively, with Tabora farmers paying 70,100/- and 50,250/-, higher than their Songwe counterparts who will buy at 62,000/- and 49,000/-, respectively.

TFRA was established under the Fertiliser Act No. 9 of 2009. Under the legislation, TFRA is mandated to enforce laws, policies and regulations governing the manufacturing, importation and use of and trade in fertilisers, or fertiliser supplements.


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