Fertiliser industry seeks US$294m

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THE Zimbabwe fertiliser industry says it requires US$294 million per year to produce 840 000 tonnes of ammonium nitrate (AN).
This was revealed after industry representatives last week met with the Confederation of Zimbabwe Industries to discuss strategies to use in lobbying government to extend support in foreign currency for the farm input production.
“A total amount of US$24,5 million is required monthly for production of 70 000 tonnes of AN and one tonne of ammonia gas to produce two tonnes of ammonium nitrate and the ammonia gas is imported,” said CZI.
Currently ammonium nitrate lands in Zimbabwe at US$500 per tonne and its retail price ranges between US$30 to US$39 per 50kg bag, translating to between RTGS$100 and RTGS$120.
However, with government support extended towards Sable for example, their 50 kg bag of fertiliser will sell at not more than US$27, translating to between RTGS$79 and RTGS$108, cheaper than any prevailing retail prices.
The argument is that, imported fertiliser may not be suitable for Zimbabwe soil types as they are made for climatic conditions in the countries they are produced, and thus not only affect soils, but also result in low yields.
“Such policies, if implemented, will assist in preserving foreign currency, which can be channelled to other critical needs,” said CZI.
The meeting agreed on the price advantage of not more than US$27 or below RTGS$108 equivalent, compared to the above US$30 currently prevailing in the market.
The meeting also found it very crucial to safeguard hundreds of jobs in the industry and the need to protect investment made.
According to CZI, the meeting further agreed to solicit comments from various stakeholders, to input into the initial draft, before presentation to Reserve Bank of Zimbabwe governor John Mangudya, Finance minister Mthuli Ncube as well as to Agriculture minister Perrance Shiri.