Maravi

Let's not play games with fertilizer

Let's not play games with fertilizer
By Editor
Wednesday June 25, 2008 [04:00]

THERE is need for the government to pay special attention to Nitrogen Chemicals of Zambia (NCZ). Over the past few months, workers and retirees have staged protests demanding that the government revive the company by pumping in more money and that retirees should be paid their terminal benefits. In December last year, the workers protested over non-payment of salaries. The workers had not been paid because the government had not released money for the 30,000 metric tonnes of fertiliser NCZ produced for the Fertiliser Support Programme. Yesterday, the workers staged a protest demanding the recapitalisation of the company and payment of retirees' benefits.

On the other hand, the agriculture minister Sara Sayifwanda recently said the government is still discussing the future of the company. Sayifwanda also said the government was still considering whether to sell off NCZ completely or to find an equity partner.
Listening to the concerns being raised by both the government and the workers, it is clear that things are not well and there is need to address the situation.

We agree with Dr Kenneth Kaunda's concerns that Zambia risks denying itself a chance of developing its agricultural sector if NCZ is sold. Dr Kaunda says we need to produce our own fertiliser if we are to sustain and develop Zambia's potential in the agriculture sector.

Agriculture still remains a critical component for economic development and food security in the country. It is the mainstay of the rural people. And these people need inputs for them to be able to produce food for sale and consumption. Agriculture is also a critical component to poverty reduction and if the government is serious with reducing poverty in the country, there is need to pay special attention to this very important sector.
The government has always been talking about strengthening the agriculture sector and how it is key to economic development.

Various initiatives like the Fertiliser Support Programme (FSP) have been introduced to help farmers with inputs. These programmes are necessary if the country is to attain high levels of food production. And it is good that the fertiliser given to these farmers is from NCZ in that, apart from empowering the local farmers, the government also supports 600 workers that are currently working for that company. However, it is sad to note that the government is considering not to procure fertiliser from NCZ for the Fertiliser Support Programme this farming season, denying these workers jobs and the opportunity to earn a salary. This means that the company will not be able to produce fertiliser this year despite having the raw materials in place. We would like to believe that NCZ, if properly funded, can produce enough fertiliser for both the local and regional markets.

NCZ has a capacity to produce 144,000 metric tonnes of fertiliser annually and 10,000 metric tonnes daily. For the company to run efficiently, they need about K170 billion for repair works, timely purchase of raw materials and basic-working capital. But last year in November, the government said they would only give NCZ K58 billion which is yet to be released.

We would like to believe that the situation can be addressed to ensure that the company is back on track. NCZ is a strategic institution, which the Kaunda regime established for the sole purpose of unlocking the country's potential in the agriculture sector. Dr Kaunda has also rightly pointed out that by the time the UNIP government was leaving office, the cooperatives were able to buy fertiliser without relying on the government. This is something that will be impossible to achieve, in an event that NCZ is not supported because farmers will have to rely on imports which might prove very costly. In an event that the cost does not go up, there would still be a problem in that we would be talking about developing the agriculture but at the same time abandoning a company that can help to build that same sector.

There is need for the government to match its words with action. It is difficult to understand the commitment to developing the agriculture sector when even the allocation to the sector in this year's budget has been reduced to K787 billion against last year's over K1 trillion. We need to remember that all these factors are intertwined. We are talking about developing the agriculture sector because it has a fundamental role in poverty reduction, food security and overall economic development. It is also central in the livelihoods of people, especially the rural poor who account for over 70 per cent of our country's poor. It is the economic heart of most countries and the most likely source of significant economic growth.

In countries where agricultural productivity has risen, the fastest rates of economic growth have occurred. Actually, we need to understand that an increase in the agricultural yields can go a long way in reducing the percentage of poor people living on less than a dollar a day. While hunger and food insecurity have many causes often outside agriculture, it remains a vital contributor to national household food security.
And for us to have a dramatically improved performance into this sector, particularly small and medium-scale agriculture, we need to plough our resources in institutions that will enhance the sector. Much as we, as a country, may not have control over issues of global commodity prices, national policies and initiatives should provide the right incentives to develop the agriculture sector.

Like Dr Kaunda said, it is good that the government is considering the future of NCZ. We can only urge them to ensure that the company is revived to enable our farmers have access to inputs as well as secure the jobs of the 600 workers currently working for NCZ.
With proper funding and proper use of funds by the management, NCZ can be revived.

It may be necessary to entice National Pension Scheme Authority (NAPSA) to takeover NCZ and pump some of its billions in this company. This is not a loss-making business, it is a highly profitable undertaking, if well capitalised and managed. And NAPSA will certainly not make a loss for its pensioners if it took over this company. And if NAPSA takes over NCZ, it should also be given Maamba Collieries because coal is an important input in the production of fertilisers.

The government has an obligation to intervene and regulate the economy, more especially the agriculture sector, in order to ensure adequate supplies of food, and also to ensure just remuneration for all those who labour to feed the nation.
Food is the most important element in any economy. Consequently, the arrangements to make food readily available to all people take on a very high priority in a well-ordered society.

Food security is central to the economic, political and social future of our country. Meeting the basic food needs of families must be top priority in our government planning. Hunger in our society is a sign of gross injustice and a block to development.
We need to provide food at prices, which give a just return to farmers and are reasonable to consumers. And the best way we can achieve this is by ensuring that the prices of inputs are reasonable.

Labels: FERTILIZER, KENNETH KAUNDA, NCZ

posted by MrK @ 4:10 AM