RATIN

Government sets indicative prices for fertiliser to curb profiteering

Posted on March, 25, 2022 at 08:22 am


The government has set indicative prices for fertiliser sold in Tanzania as part of efforts to prevent traders from inflating prices.

On average, 50-kilogramme bags of fertiliser will now each be sold from Sh73,468 to Sh75,526, while 25-kilogramme bags will fetch between Sh37,734 and Sh38,763 each.

 

Announcement by TRFA

An announcement by the Tanzania Fertilizer Regulatory Authority (TFRA) shows that prices of fertiliser packaged in five-kilogramme bags will range from Sh8,147 to Sh8,353.

According to the TFRA statement, the decision was made after the government’s deliberations with fertiliser importers and sellers following sharp price increases in recent months.

The increases are contrary to the 2021 government decision to suspend the bulk procurement system and setting of indicative prices in order to increase imports and spur competition in the fertiliser business.

 

50kg bag of urea

But TFRA director general Stephen Ngailo told journalists earlier this month that a 50kg bag of urea was in February being sold at between Sh96,000 and Sh98,500 in Njombe Region; Sh96,000 to Sh99,500 in Ruvuma Region, and Sh105,000 in Katavi Region.

Prices increased in March 2022 to between Sh145,000 and Sh150,000 in Njombe Region, Sh139,000 in Ruvuma Region, and Sh145,000 in Katavi Region.

On March 17, Agriculture minister Hussein Bashe told a meeting of fertiliser importers and traders that the price of a 50kg bag increased from Sh109,000 to Sh139,000 in just a week.

“This is unacceptable. You are forcing the government to reinstate BPS, and control prices. You should meet with TFRA, and agree on prices to be charged at various selling points countrywide,” he said.

According to the TFRA statement, indicative prices had been set for DAP, UREA, CAN and SA fertiliser to prevent arbitrary price increases effected by unscrupulous traders for personal gain.

“Regional and district inputs committees are instructed to address the situation where challenges will persist according to geographical and infrastructure disparities of the respective area,” reads the TFRA public notice signed by Dr Ngailo.

 

Display prices

The notice instructed regional, district and council authorities to ensure that shops selling agricultural inputs clearly display indicative prices where buyers can easily see them, and that they should also oversee implementation of the directive.

According to TFRA, Dar es Salaam farmers will pay the lowest prices due to the region’s proximity to Dar es Salaam Port where fertiliser consignments are received.

According to indicative prices released by the regulator 50, 25 and 5kg fertiliser bags will now cost between Sh66,365 and Sh68,405; Sh34,182 and Sh35,203, and Sh7,436 and Sh7,641, respectively, in Dar es Salaam.

Farmers in Katavi, Kagera, Kigoma and Rukwa regions will pay the highest prices owing to the distance from Dar es Salaam Port.

Source: The Citizen