Why subsidised fertilisers is boon to importers and dealers

Arusha. Fertiliser importers, distributors, and sales agents have said that the introduction of subsidised fertilisers has given their businesses a boost.

The scheme, according to them, has significantly boosted the sales of fertiliser to the extent that they have had to open new distribution channels and sales points.

To handle the rapidly growing local and regional markets, some manufacturers are thinking about expanding their manufacturing facilities.

Others have expressed their confidence in the business due to the presence of a conducive environment that encourages healthy competition among players.

These observations were shared by some fertiliser business players in the northern zone, which comprises the regions of Arusha, Manyara, Kilimanjaro and Tanga.

They shared this with a team of journalists who toured the regions to underscore the positive impacts of subsidised fertilisers distributed to Tanzanian farmers in the 2022/23 season.

During the season, the government disbursed Sh150 billion for the implementation of the programme overseen by the ministry of agriculture.

The programme, which is coordinated by the ministry through the Tanzania Fertiliser Regulatory Authority (TFRA) aimed at relaxing fertiliser prices that were adversely affected by Covid-19 and the ongoing Russia-Ukraine war.

Speaking during the journalists’ visit, the Export Trading Global (ETG) supervisor in Arusha Region, Mr Said Abdallah, said the government’s decision has increased farmers’ fertiliser uptake in the northern zone.

“We have distributed over 2,500 tonnes of fertiliser to farmers in different areas including Usa River, Katiti, Tengeru, Forest, Magugu, Karatu and Babati districts,” he said.

Mr Abdallah said in order to meet the growing demand, the company decided to open new selling points in different parts of the country, a decision that has reduced the workload and stress for ETG workers as well as enabled farmers to timely get fertiliser.

Before the introduction of the programme, the company used to sell an average of 1,500 tonnes, according to Mr Abdallah. He noted that the company has more than 900 tonnes of fertiliser in stock.

“We commend the government, the ministry of agriculture and TFRA for successfully executing the programme despite the presence of some challenges especially atthe beginning,” he said.

“To be specific, TFRA has played a pivotal role in addressing challenges in the electronic system used in the fertiliser disbursement process,” he added.

He supports the farmers’ and stakeholders’ request to the government to consider making the provision of subsidised fertiliser a sustainable programme for the est interest of the country’s agriculture, job creation and business prosperity in the value chain.

Minjingu Mines and Fertilizer Limited managing director Tosky Hans said his company has sold 9,000 tonnes of subsidised fertiliser to the southern highland farmers.

He said since the northern zone is expected to grace the high season effectively from this month (February), the company has targeted to sell 22,000 to 27,000 tonnes.

“Meeting the 22,000 to 27,000 tonnes target, means the company will double its business as compared to the sales made before the introduction of subsidised fertiliser,” he said.

The company is investing $12 million (about Sh27.6 billion) in an expansion project aimed at increasing annual production from 100,000 tonnes to 300,000 tonnes, according to him.

He said his company has increased its provision of education to farmers and that over 130 agents and 12 depots provide assurance on the availability of fertiliser close to their areas.

Premium AgroChem Company Limited branch manager Jacqueline Thomas said 150 tonnes of fertiliser have been sold since the beginning of the programme.

She said the amount was high compared to the 110 to 120 tonnes sold before the start of the programme.

“Hopefully, the amount sold will further increase. Currently, we have 300 tonnes in stock,” she said.

Furthermore, she said the company has been collaborating with district and regional agriculture officers in educating farmers about the proper use of fertiliser.

“TFRA has been playing an important role in assisting us to address challenges related to the digital system,” she said.

She advises farmers take advantage of the opportunity by increasing investments in the sector.

“Farmers should avoid hoarding subsidised fertiliser in order to create artificial scarcity for personal gains because the government is closely following the process,” she said.

The Office Cherifien des phosphates (OCP) agronomist in Arusha Branch, Mr Allen Nyang’anyi said fertiliser imports have increased to 7,000 tonnes from the previous 5,000 tonnes.

“The increase will continue as the high season is expected to commence this month in Arusha and Manyara regions,” he said, adding that currently, the company has over 300 tonnes of fertiliser in stock. The company, whose fertiliser s are manufactured at its plant in Morocco has improved the quality of the fertiliser by increasing nutrients in the product such as boron and zinc.

Furthermore, he said the company has 20 demonstration farms and the OCP school lab that carries soil testing in various regions in the country.

According to him, soil testing has been done in 100 villages in every region. He said that 30 farmers have been directly benefiting and that the service has benefited 10 regions across the country.

Mohammed Enterprises Tanzania Limited (MeTL)’s area sales manager Jafar Abbas said the subsidised fertiliser programme has discouraged the product’s black market and hoarding.

Mr Abbas said before the programme, the company had one selling station in Dar es Salaam, noting that currently they have opened new selling stations in Arusha, Mbeya, Kahama, Iringa and Songea.

“Before the introduction of the programme, the company used to sell one type of fertiliser. But, currently, about 800 tonnes of subsidised fertilisers have been sold since opening of this branch,” he said, expressing hope that more fertilisers will be purchased this month.

“The system had some challenges at the beginning, but following the role played by TFRA, things have settled and now agents and distributors are efficiently serving farmers,” he added.

Minjingu Mines and Fertiliser sales officer at the Babati Station Paulo Bura said his station received 300 tonnes of fertiliser of which 280 tonnes have already been sold.

“I have seen a rise in sales compared to the time before the programme started, thanks to the subsidised fertiliser,” he said.

He said this has prompted him to expand his business to other places including Magugu, Mbulu, Hanang and Kondoa in Dodoma Region. ETG representative in Babati District Othman Hassan said over 1,500 tonnes of subsidised fertilisers have been sold since August 25, 2022.

“The amount sold is extremely high compared to an average of 600 and 700 tonnes before,” he said.

He said subsidised fertiliser has provided price relief to farmers, noting that the company was expecting to make a record sale this year.

The owner of Fide Mamba Agrovet, Mr Fidelis Terry said he has so far sold 230 tonnes of subsidised fertiliser and that another 20 tonnes remain in stock.

“Subsidised fertilisers have created opportunities for fertiliser dealers,” he said. Mr Terry expects more fertiliser will be sold this season.