The Sunday Mail
Sunday Mail Reporter
THE Reserve Bank of Zimbabwe (RBZ) is taking Government’s Command Agriculture scheme seriously and has prioritised foreign currency allocation to fertilizer companies for the importation of raw materials.The RBZ Governor, Dr John Mangudya said it was the central bank’s mandate to avail foreign currency that is needed by fertiliser companies to manufacture top dressing fertilizers.
Most farmers countrywide are now in need of top dressing fertiliser as crops, especially maize plants, are now past the one metre level.
The situation has been further compounded by incessant rains that require farmers to add more nutrients to the soil. Last week, Dr Mangudya told The Sunday Mail that fertiliser companies have been put to the foreign currency priority list.
“We are glad to announce that fertiliser raw materials have been included on the top import priority list given their importance to one of the key sectors of the economy (agriculture).
“Given the demand of fertiliser at this stage of the season, we have seen it judicious to include it on the list as most farmers are now in dire need of the top dressing fertilisers.
“We are attending to firms’ foreign currency requirements on a continuous basis and we are certain that top dressing fertiliser is now being distributed countrywide,” said Dr Mangudya.
There were fears that Zimbabwe would run out of the chemical owing to delays by the Reserve Bank of Zimbabwe in releasing foreign currency for the purchase of raw materials.
However, after some intensive consultations among the Ministries of Agriculture, Mechanisation and Irrigation Development; Finance and Economic Development and Industry and Commerce; the central bank included fertilisers on the priority list.
Since the turn of the new year, top dressing fertiliser supplies have improved slightly.
RBZ says it is allocating foreign exchange to firms buying fertiliser raw materials from South Africa and Mozambique.
Zimbabwe Commercial Farmers Union (ZCFU) president Mr Wonder Chabikwa said although farmers are happy that the situation is being attended to, there is need to move with speed to ensure that farmers get fertilisers on time.
“We are very delighted that the situation has improved and is being addressed but there are still some shortages as some farmers are being turned away by some big fertiliser companies and being told to come at later dates.
“This is not a very good thing for our agriculture as further delays will dampen our prospects for high yields.
“Farmers need to get fertiliser in time to ensure that they can achieve the five tonnes per hectare target or any maximum yields possible,” said Mr Chabikwa.
The Sunday Mail has gathered that suppliers of fertiliser raw materials in Mozambique and South Africa are dispatching inputs to Zimbabwe as the companies are now receiving foreign currency to buy the fertilisers.
Information gathered show that ZFC Ltd has already been given part of the US$6 million it requires to manufacture fertiliser to meet its obligations under Command Agriculture.
Omnia Fertiliser, which was contracted by Government to provide 6 800 tonnes of Ammonium Nitrate, has so far supplied 5 000 tonnes.
Fertiliser firms are still appealing to Government to increase the amount of foreign currency allocation to enable them to meet their contractual obligations.
The appeal was made through the Parliamentary Portfolio Committee on Agriculture, Mechanisation and Irrigation Development after legislators recently visited Omnia Fertiliser Zimbabwe plant in Banket and ZFC Limited in Harare to assess challenges being faced by the industry.
Chairperson of the Parliamentary Committee, Honourable Christopher Chitindi encouraged RBZ to increase its offerings so that the companies can continue production.
