APA-Addis Ababa (Ethiopia) The government of Ethiopia has launched a new fertilizer procurement system in a bid to address the perennial issue of timely supply of the agricultural product for millions of small-scale farmers across the country, APA reported on Monday.
The new fertilizer procurement system comes after numerous farmers especially in the Amhara region confronted the looming risk of missing out on the crucial planting season.
The repercussions of these challenges have sparked widespread demonstrations in the country’s Amhara region..
In recent years, the delivery of fertilizers to small-scale farmers has faced significant disruptions. The global fertilizer trade, which has already been affected by economic constraints before 2021, has been further impacted by the global energy crisis due to the Russia- Ukraine conflict. These two countries, along with Belarus, play crucial roles as major players in the global fertilizer industry.
Unlike the current arrangement of one-year agreements with suppliers, the newly proposed fertilizer procurement system will allow for the purchase and supply of fertilizer for a three-year period, according to the minister.
The proposed fertilizer procurement system allows for contracts with suppliers to be extended up to three years, effectively shortening the time it takes to procure the agricultural input by a maximum of four months.
Teff, wheat and barley among the key crops that are anticipated to be planted in June and July during meher season, which runs up to December.
Authorities have indicated that this new system has been introduced in response to the instability of the current system. ‘The current fertilizer purchase system is volatile,” Girma Amente, Minister of Agriculture said during a press briefing on July 29, 2023.
Fertilizer holds significant importance as strategic commodity in Ethiopia’s import lineup. In preparation for the approaching harvesting season, the country has invested over one billion dollars to secure approximately 14 million quintals of NPS, NPSB and Urea fertilizers. This expenditure accounts for 6.5 percent of Ethiopia’s annual import bills.
To overcome the supply disruption, the corporation launched an international tender two months earlier than usual last year. However, despite this proactive approach, ensuring the timely delivery of fertilizers to Ethiopian farmers has presented challenges.
MG/abj/APA