Sinopia News Top

264.8 Million Dollar Fertilizer Shipment to Arrive in Ethiopia

A fertilizer shipment worth 264.8 million US dollars is expected to arrive next week. The 450, 000 tons of fertilizer is supplied by a Swiss company, Amropa- Ag and Indiargo.

The fertilizer purchase is less than the Ethiopian government's plan to import two years worth of fertilizer in the expectation that international prices will increase. Price increases already in effect limited the government to the purchase of supplies for just one year. Current fertilizer prices have risen from 491 dollars to 503 dollars for a ton of Urea and from 590 dollars to 630 dollars for a ton of Dap fertilizer.

The increases seen with the purchase of the current shipment of fertilizer are expected to affect farmers unless the government subsidizes the cost according to an anonymous source at the Central Statistics Agency.

The effect could also be passed on to the consumer if farmers transfer the additional costs for fertilizer onto food prices explains the source.

The government opted to purchase fertilizer directly from the manufacturers after canceling a bid for the supply of 1.3 million tons of fertilizer due to high prices quoted by bidders.

It is to be remembered that the Ethiopian government has activated plans to build a fertilizer factory in the Oromia Regional State. It is expected that the output of the new factory will reduce the amount of fertilizer imports and the costs attached significantly.

Source: Addis Fortune