Government announces fertilizer subsidies
Alhaji Mohammed Muniru Limuna, Minister of Food and Agriculture, has launched the 2016 agricultural subsidy programme with a subsidy on organic fertilizer.
Government has subsidized 180,000 metric tonnes of granular fertilizer at a cost of GH₵ 120 million and organic fertilizer at a cost of GH₵ 18 million.
Alhaji Limuna said with effect from April 1, 2016, the selling prices of the various types of fertilizers for the 2016 farming season would be: GH¢ 85 per 50kg bag of compound fertilizer and GH¢ 80 per 50kg bag of urea.
He said government was therefore subsiding fertilizers at an average of 26 per cent, adding that the modalities and pricing mechanisms for the organic fertilizer were being worked out and will be communicated to stakeholders in due course.
He explained that subsidy in organic fertilizer was because of the role organic fertilizers played in soil health, adding that apart from adding nutrients to the soils, it also improves soil structure, increases water holding capacity, improves aeration and promotes the activities of soil micro and macro organisms.
He said production and reuse of organic fertilizers also encourages recycling and reuse of domestic waste, which currently poses environmental hazards.
The Minister indicated that fertilizer companies participating in the subsidy programmes had been allocated quotas of various fertilizer types and those companies shall continue to import, clear the fertilizers from the ports and distribute to the regions and districts for sale to farmers by their registered sales agents.
He said the Ministry of Food and Agriculture intended to use electronic platform to manage the subsidy programme as part of efforts to improve efficiency and transparency in the management of fertilizer programme in Ghana.
Alhaji Limuna said farmers targeted under the subsidy programme include smallholder farmers cultivating maize, rice, sorghum, millet and vegetables. Out-grower farmers registered under recognised nucleus farmers/companies would also be considered.
Source: GNA