The Peasant Farmers Association of Ghana is urging the government to pay debts owed to fertilizer companies in the country to ensure the availability of the product throughout the year [2022].
There was a major shortage of the product on the market last year [2021] which saw a rise in the price of the commodity and subsequently led to a spike in the price of food items on the market.
Head of Programs and Policy for the Peasant Farmers Association, Charles Nyaaba in a Citi Business News interview, stressed that the government must do all it can to secure fertilizers for farmers at competitive prices.
“If you look at budget allocation to the agricultural sector, it has increased to about 30% to the planting for foods and jobs. Now the market has increased astronomically. In 2019, 50kg of NPK was around GH¢120 and GH¢130. In 2020, it increased to 200 to GH¢230. Today if you go to the market, NPK is selling at GH¢240 to GH¢400 depending on the company. So, when the season starts, there is a possibility that these prices will even get worse” Mr. Nyaaba feared.
“What we expect the government to do, is to quickly pay money owed to fertilizer company’s so that these companies can quickly scout for fertilizers, so they can store them while we wait for the season to start,” Mr Nyaaba further noted.
China has announced a ban on the exportation of fertilizer due to underproduction.
The move is in a bid to ensure that the little fertilizer produced in China is made available to Chinese farmers.
With Brazil being the only other major supplier of fertilizer available to turn to, it will be important for local blending companies to be held fast to the market and secure enough consignments for local farmers.
Mr. Nyaaba also said there is the need to “position ourselves well because if we don’t take care of what will happen in 2021 will happen in 2022 as well. The reason why there are some increases in almost all agricultural commodities in the market is that we are not able to get fertilizer in the right quantities”.
