Nitrogen Chemicals of Zambia (NCZ) says the United Party for National Development (UPND) government is yet to communicate how it will ensure the reduction of fertilizer prices from K700 per 50kg bag to K250.
The farming season for many local farmers who depend on rains is fast approaching, with expectant farmers wondering if the reduction will be effected from this farming season. Meanwhile, NCZ Sales and Marketing Manager Cleopatra Chanda said the company is not yet aware of the policies that the new government will put in place in order to reduce the cost of fertilizer.
Chanda said the price of fertilizer had gone up due to the depreciation of the Kwacha, so the company awaits to hear the policies that the new UPND government will put in place to ensure that prices of fertilizer go down.
Speaking in an interview with the Zambian Business Times – ZBT, Chanda said the company imports some of the raw materials which are used in the manufacturing of fertilizer and the imports are made using US dollars and not the kwacha therefore leading to high prices.
She mentioned that a 50kg bag of D Compound is currently selling at K660 wholesale price and K665 retail price. She said the company is still waiting for communication on the current price of Urea but a 50kg bag was previously selling at a wholesale price of K730 and retail price of K735.
She added that the wholesale price only applies when one is buying atleast 50 bags of fertilizer. Chanda noted that production is going on smoothly since the injection of K684 million into the Nitrogen Chemicals of Zambia by the Industrial Development Corporation-IDC to boost its production and overall company performance.
During campaigns leading up to the 12 August 2021 elections, in a message to his supporters, then main opposition candidate and now republican President Hakainde Hichilema pledged that when his party forms government in August this year, which it did, it would lower the price of a 50kg bag of fertilizer, which was costing them between K700 and K800 to K250.
