Fertilizer Prices For DAP Drop From Sh6,000 To Sh2,800, Government Announces

Smallholder farmers countrywide will start buying fertilizer at lower prices after the government released Kshs. 5.7 billion to subsidise prices of the commodity.

While making the announcement on Friday, Agriculture Cabinet Secretary Peter Munya said the fertilizer subsidy fund is expected to reduce high input costs incurred by farmers and boost food production.

Following the announcement of the subsidy, CS Munya published new fertilizer prices which cover an estimated 114, 000 metric tonnes of the farm input.

Farmers will now pay Kshs. 2,800 for a 50Kg of DAP fertilizer from a high of Kshs. 6000, Kshs. 1,850 for CAN, Kshs. 2,700 for UREA, NPK Kshs. 3,000, MOP Kshs. 2,500 and Sulphate Ammonia Kshs. 2,500.

The subsidy will cover an estimated 1 million acres of land held by smallholder farmers who had projected lower crop yield as a result of soaring prices of the commodity in the country.

“The use of fertilizer in agricultural productivity is threatened following recent spikes in fertilizer prices. In the last 12 months, fertilizer prices have risen to levels that have affected both large and small-scale farmers who are contributors to the 100% food and nutrition security,” said CS Munya.

According to CS Munya, the escalating prices of the farm input were triggered at the beginning of last year due to logistical constraints attributed to COVID-19.

Additionally, prices skyrocketed after China, Russia and Turkey restricted exports to protect their local farmers as demand for the commodity surged in India, Brazil and USA.

Increased buying by major importers of the commodity also led to higher shipping charges for bulk and containerized cargo, a situation aggravated by the Russia-Ukraine conflict.

Munya stated that the commodity will be available to farmers beginning Saturday.

“To ensure sufficient delivery and control mechanisms are in place, the fertilizer will be available at National Cereals and Produce Board (NCPB) stores countrywide effective tomorrow. These government agencies will sell the fertilizer at agreed subsidised prices to stabilise the prices of critical fertilizer to the Kenyan farmer,” he added.

CS Munya had earlier indicated that the government requires at least Kshs. 31 billion to cushion farmers from rising prices.