Govt to rescue farmers

Government is putting in place various measures, including possible tax waivers, to bring down the cost of fertilisers ahead of the summer cropping season, according to Ministry of Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary, John Bhasera.

Speaking at the Zimbabwe Farmers Union congress in Gweru last week, Bhasera said the measures were meant to ensure farmer viability in the face of high inflation and shortages of inputs.
The price of fertilisers and other farming inputs have escalated sharply in recent months, in part due to inflation, and also the supply disruptions caused by the Russia-Ukraine war.

The two countries are the biggest suppliers of fertilisers in the world. Among other measures, Bhasera said the government had already scrapped duty on nitrogen fertiliser imports, and was negotiating with both the Zimbabwe Revenue Authority and the Reserve Bank to also do the same for imported fertiliser inputs.

He said the Ministry was also negotiating with the central bank to cut interest rates for farmers as part of the broader measures to ensure farming viability.

“We are at an advanced (stage) in terms of negotiations with Ministry of Finance and RBZ and other relevant authorities so that the interest rates (for farmers) can be in the lower quarter of that range of 100 to 200 percent,” he said.

The government has also scrapped Value Added Tax on fertiliser.

Farmers complained of high costs of inputs last season as the majority of them were sold in foreign currency that they secured on the black market at higher premiums.

Already, some figures being requested by some players in the value fertiliser value chain are beyond the reach of many farmers.-ebusinessweekly