Tea Farmers To Benefit From Ksh 9 Billion Fertilizer Imports

By Lynnet Okumu / Published August 24, 2022 | 12:09 pm

KEY POINTS

In July 2021, the government set a minimum price of 240 shillings per kilogram after farmers failed to supply produce due to low prices that hit 180 shillings per kilo. This was almost at par with the cost of production which runs at 170 shillings per kilo.

KEY TAKEAWAYS

Currently, a 50kg bag of fertilizer costs between 4200 to 7,000 shillings in some regions after prices increased in the global market due to the Russia-Ukraine conflict.

KTDA is now seeking 3 billion shillings from the National Treasury for subsidizing the fertilizer to make it affordable for smallholder farmers. With the subsidy, it will cost the framers about 3,500 shillings per 50Kg bag

The Kenya Tea Development Agency (KTDA), earlier this week imported fertilizer worth 9 billion shillings for distribution to over 650,000 smallholder tea farmers across the country.

The first consignment of the two 1.8 million metric tons of fertilizer imported from Russia arrived on Saturday 20^th August 2022, with the Agency seeking to start distributing it to smallholder tea farmers later this week.

The first consignment contains 820,000 50kg bags of fertilizer that is being transported via the Standard Gauge Railway from Mombasa to Nairobi for packaging and distribution.

The second batch of the fertilizer is expected in the country in the first week of next month and will contain 471,000 50 kg bags of fertilizer.

Currently, a 50kg bag of fertilizer costs between 4200 to 7,000 shillings in some regions after prices increased in the global market due to the Russia-Ukraine conflict.

The farmers have always decried the inflated cost of producing the commodity, yet prices at the Mombasa Tea Auction remain low.

About 4.13 million kilograms of tea were withdrawn from the floor due to low prices caused by reduced demand and security concerns over the August 9 General Election.

KTDA tea accounts for over 70 percent of the total volumes traded at the auction and the lack of demand for this beverage has had a negative effect on the overall price on the floor.

Traders are, however, hopeful that activities at the auction will soon return to normalcy and the commodity will command better prices.

While setting the minimum price, the government capped the cost of producing a kilo of tea at 84 shillings.

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