One of the country’s major local fertilizer suppliers, Nyiombo Investments, has lowered its price for the commodity following the continued appreciation of the Malawi Kwacha.
The company has slashed the price by 15 percent, a development it says reflects the situation on the ground.
In the past weeks, the local currency has been gaining momentum against the US dollar and other major currencies bringing hope to Malawians.
“We want to pass the benefit of the kwacha appreciation to farmers,” said Honest Tembo, Finance and Administration Manager for the company.
With the price reduction, a 50kg bag of fertilizer is now going at K15 500 from K17 800
He added: “As we import the commodity, our bills are dominated in foreign currency and when the local currency appreciates, that means we will need a few kwachas to pay our bills hence the decision to cut the prices.”
Since President Joyce Banda devalued the local currency by 49 percent in May 2012 and then floated it, prices of fertilizer just like of many other basic commodities on the local market have continued to rise.
But Tembo cautioned the company may adjust its prices upward again anytime should the Kwacha lose value against major trading currencies.
“As we import the commodity [fertilizer], forex is required. But in an event when the kwacha weakens, you will expect prices to obviously go up,” he warned.
According to statistics, Nyiombo Investments, which started its operations in the country in 2005, reportedly supplies between 40 000 and 50 000 metric tons of fertilizer on the local market annually.
It has at least 30 percent of the country’s fertilizer industry market share and during the last growing season it contributed about 12 000 metric tons in Farm Input Subsidy Programme (FISP).Follow and Subscribe Nyasa TV :