Fertilizer Prices to Spike Due To Russia- Ukraine War
KEY POINTS
The rise in prices has been attributed to high prices of natural gas in Europe which forced some manufacturers to stop or curtail production.
KEY TAKEAWAYS
The cost of fertilizer is set to escalate to over Ksh.7,000 for a 50kg bag from a stand of Ksh.6,000 which is an increase from a low of Ksh.4,000 last year.
By Jane Muia
Agriculture Cabinet Secretary Peter Munya on Tuesday said that the cost of fertilizers and farm input could rise due to the ongoing Russia-Ukraine war.
The cost of fertilizer is set to escalate to over Ksh.7,000 for a 50kg bag from a stand of Ksh.6,000 which is an increase from a low of Ksh.4,000 last year. The rise in prices has been attributed to high prices of natural gas in Europe which forced some manufacturers to stop or curtail production.
The CS stated that Russia and China are Kenya’s major suppliers of fertilizer and the Ukrainian invasion by Russia could affect the supplies globally.
“We get most of our fertilizer from Russia and China and this war may see the price of fertilizer hit sh7,000 if there will be no subsidy in place,’’ Munya told the parliament.
The ministry said it requires Ksh.31 billion to stabilize the prices adding that it will lower the cost of planting fertilizer (Diammonium Phosphate) to Ksh.2,800. The rise in prices is a huge blow to farmers who are preparing for the planting season. Even as Kenyans continue with the lower food prices debate, it is now clear that the food prices might go higher.
“Given the war in Russia and Ukraine, the prices could even go higher,’’ CS Munya told the Committee.
In addition, the high cost of fertilizer has also been caused by a slowdown in production by China when Covid-19 Struck cutting down exports significantly.
Munya made the remarks while responding to Molo MP Kimani Kuria who sought a statement on the high cost of fertilizer in Kenya.
The Russia-Ukraine war is expected to slow or halt crop production in Ukraine, which is one of the world’s largest producers of wheat as well as seed oils. This will trigger a global increase in wheat prices as well as reduced supplies resulting in a spike in prices on some foods such as bread, beer and animal feeds.
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