South Africa Agriculture Groups Urge More Fuel Relief As IMF Warns of Global Shock

The South African agricultural industry welcomed the cut in the fuel levy, but there are calls for more action to protect the country's food security.

South African agricultural groups on Tuesday welcomed the R3.0/litre cut to the fuel levy, but urged the government to take more measures as surging fuel and fertiliser costs threaten the sector and ultimately the country's food security.

South Africans woke up on Wednesday to significantly higher fuel prices at the pump, but would have been paying more were it not for the temporary slashing of the fuel levy until 5 May.

"In most farming systems, fuel accounts for between 12% and 18% of production costs, making it a critical cost driver in periods of volatility. The relief measure will therefore help to ease immediate cost pressures and could play an important role in buffering against further food price inflation in the short term," AgriSA and Agbiz said in a joint statement.

"In addition to fuel, other major inputs such as fertiliser, often accounting for up to 35% to 50% of production costs, are also under upward pressure due to global supply disruptions and geopolitical risks."

Agriculture urges government stepsThe government has signalled it is considering additional measures, and agricultural organisations have asked it to urgently consider the following:· Greater flexibility in the fuel price adjustment mechanism, including more frequent reviews...

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