Government releases £ 260million for payment for fertilizer companies

The government, through the Ministry of Finance, announced a release of more than GH ¢ 260 million for the payment of arrears owed to fertilizer companies from May to July 2021.

Food and Agriculture Minister Dr Owusu Afriyie Akoto made the announcement in Accra in response to an urgent question from South Dayi MP Rockson-Nelson Etse Dafeamekpor.

Mr. Dafeamekpor wanted to know what measures the ministry was taking to pay arrears owed to fertilizer suppliers in order to avoid the severe shortage that the country’s farmers are currently facing.

Dr Afriyie-Akoto explained that the funds released included an amount of GH ¢ 176,631,445, but the actual payment made to companies to date was GH ¢ 73.8 million, which he said was processed by the Ministry of Food and Agriculture via the GIFMIS system.

He said the payment was 44% of the total debt of GH ¢ 587,876,784 owed to all fertilizer companies that provided fertilizer to all farmers as part of the Plant for Food and Jobs campaign. .

Dr Afriyie-Akoto added that the ministry approved an upward adjustment of Planting for Food and Jobs fertilizer in 2021 to amortize fertilizer companies due to rising commodity prices in the international market. due to the COVID-19 pandemic.

He said the adjustment would allow fertilizer companies to import and distribute fertilizer for the 2021 planting season and added that the ministry had held an emergency meeting with fertilizer companies to discuss the shortages. fertilizers and their negative effects on food security.

He said monitoring the availability and distribution of fertilizers to farmers has improved significantly since then.

When asked in a supplemental question what steps the ministry is taking to ensure there is a sufficient supply of fertilizer until the end of the year, the minister explained that the Covid-19 pandemic had hit the global fertilizer industry as prices fell. – up by more than a third.

He said the freight has also increased.

He said that despite the challenge, the government has made arrangements to ensure that at least during the minor season which is yet to come, sufficient fertilizer is made available to farmers so that they can conclude their process and ensure a good harvest.