LIVINGSTONE MARUFU
Zimbabwe’s fertiliser industry has been severely hit by foreign currency shortages needed to import raw materials to manufacture adequate stocks throwing into disarray the 2020/21 summer cropping season.
The fertiliser shortages come at a time there is projection for a normal to above normal rainfall.
Zimbabwe requires about US$120m to import fertiliser raw materials.
However, the fertiliser companies have secured US$56m through the letters of credit arrangements with the African Export-Import Bank.
They are now scrambling for the balance of US$64m.
Failure to access the forex could potentially result in serious shortages of fertiliser.
Zimbabwe Fertiliser Manufacturers’ Association chairperson Tapuwa Mashingaidze this week said the situation was dire.
“Most fertiliser companies have no foreign currency for the consignment management agreement to bring the much needed commodity in the market,” Mashingaidze told Business Times.
“We are not getting enough foreign currency to import raw materials for the production of 550 000 tonnes.
We require about US$120m.“(But), we are still short of US$64m to meet that demand.”
Zimbabwe requires an estimated 550 000 tonnes of fertiliser for a successful summer cropping season with basal fertiliser estimated to be 250 000 metric tonnes and top dressing fertiliser amounting to 300 000 tonnes.
Mashingaidze said fertiliser manufacturing firms have set up new blending plants over the past few years.
However, fears are mounting that without the much-needed raw materials, the blending plants would turn into white elephants.
“Most companies have set up several blending plants to increase production of NPK and basal fertiliser.
But, what is needed are the raw materials which need forex,” Mashingaidze said.
The central bank has been allocating foreign currency to fertiliser manufacturing firms for the importation of raw materials.
But, that has not been adequate.Zimbabwe Commercial Farmers’ Union president Wonder Chabikwa said the monetary authorities should ensure forex was readily available to maintain the gains for the good season so far.
“We are experiencing some heavy downpours across the country and this comes at a price of washing away nutrients causing the maize to turn yellow hence there is need for more fertiliser application.
Wholesalers should have adequate fertilisers which are affordable in order to entertain hopes of a bumper harvest.
“We have had some challenges with top dressing fertiliser during this time of the year hence the authorities should act on fertiliser shortages to enable farmers to grow good quality crops.”
Over the years, Zimbabwe’s crop output has sharply declined due to fertiliser shortages, among other challenges.
Riding on the current rainfall patterns, the country is expecting a harvest of over 3m tonnes of grain which is way above the country’s requirement of 1.8m tonnes.
