The Chamber of Agribusiness Ghana has indicated that, there is a spike in price of fertilisers as a result of the instability in Russia and Ukraine.
The Chamber fears a shortage in fertilizer supply is imminent which could also create rising food costs.
As the second-largest potash producer in the world, Russia is a key global fertiliser producer at a low cost with a huge volume of production. Ukraine is a global leader in grains export. Due to regional tensions and sanctions on Russia, fertiliser trade is already negatively affected.
“In turn, farmers are cutting back on fertiliser use, which raises the cost of fertiliser for them”, the Chamber assessed in a press statement released, last week. “Food prices may rise as a result of lower agricultural output and reduced availability around the world. In the United States, food costs are already some of the most expensive.”
The Chamber listed below some of the immediate effect of fertiliser supply disruption in Ghana and across Africa;
1. Fertiliser prices have soared this year because of a lack of supplies and rising energy expenses
2. The rising expense of food will be exacerbated if farmers continue to use more expensive fertilisers. It’s already starting to take its toll on farmers.
3. Reduced application of fertilisers could have an effect on crop production and growth
Recommendations
1. Government should cushion fertiliser supply chain by waiving tariffs on certain category of fertilisers especially for the planting for food and jobs (PFJ) programme.
2. Government should take a relook at the Cedi depreciation, fuel prices and general cost of living and waive nuisance taxes on these commodities to cushion consumers.
3. Government should support local fertiliser producers like Omnifert Limited, a fertiliser company, a wholly-owned Ghanaian manufacturing company at Dawhenya, Best Fertiliser Company Limited which is under the one district, one factory initiative located at Asankare in the Ashanti Region, which commenced operation in January 2021 to increase their production lines to meet domestic demand.
4. Invest and support commercial organic fertiliser producers like the Accra Compost and Recycling Plant and many others across the country.
5. Implement new fertiliser recommendations and blends for the Guinea Savannah and Forest-Savannah Transition agro-ecological zones by the Soil Research Institute (SRI-CSIR) and other research institutes.
6. Promote climate-smart agronomic practices and adoption of phosphorus-efficient cereal and grain legume varieties in the Guinea Savannah Agro-ecological zones.
7. Promote the utilisation of rhizobium inoculants + phosphorus-based fertilisers for grain legume production in the Guinea Savannah Agro-ecological zones.
8. Promote adoption of crop and site-specific fertiliser blends for smallholder farmers.
9.Set up an Agriculture Resilience Fund to protect farmers as they produce food for the Country’s food security.
*CHAMBER OF AGRIBUSINESS GHANA*
