Malawi aims to increase fertiliser usage

The Malawian government says it will continue involving the private sector in the Fertiliser Subsidy Programme, but has asked the players not to form monopolistic cartels. Deputy agriculture minister Bintony Kutsaira said this on May 4 during the launch of the Fertiliser Association in Lilongwe.

"I would like to make a special plea that the formation of the Association should not result in a monopoly in the industry. I would like to believe that as individual companies, you will maintain a healthy competition so that the consumer benefits from a wide choice of suppliers," said Kutsaira.

The minister said he was positive the association will help government increase the national consumption of fertiliser from the current estimate of 200,000 metric tonnes through public-private collaboration. "The government has accorded the agriculture industry the top priority in our development efforts. This is evident in the government's efforts to support the private sector in distribution of inputs. The government believes that supporting the participation of private sector in input distribution will allow the best use of modern agriculture technology to reduce, and ideally, eliminate chronic food insecurity," said the minister.

Agriculture remains Malawi's most important economic activity, with 80 percent of the population staking their lives on it. The sector makes up roughly 40 percent of the Gross Domestic Product and brings in more than 75 percent of the country's export earnings. But access to inputs and fertiliser in particular, has in the past constrained production, especially for the smallholder sector, hence the introduction of the subsidy initiative. With only about 30 percent of farmers using fertilisers, government plans to increase the national consumption of input by subsidising the cost by 70 percent, according to Kutsaira.

The new association has 14 members, all of which are fertiliser companies involved in importing, blending, manufacturing, distribution and sale of fertiliser products in Malawi. The body aims to ensure that government policy on fertiliser is conducive to the importation, manufacture, distribution and sale of fertiliser in Malawi and to act as a forum for engaging with government,
donors and other stakeholders in the agriculture sector. The association also wants to help government in promoting agricultural productivity and food security in Malawi; assist in developing and promoting fertilizer usage suitable to Malawi's agro-industry environment.

The Nation