Shelly-Ann Thompson, Staff Reporter

Minister of Agriculture, Dr. Christopher Tufton. - File

The Ministry of Agriculture has reported that procedures are completed to ensure that the $70 million fertiliser subsidy allocated by the Government is disbursed to the manufacturer, Newport Fersan, by today as promised.

Donovan Stanberry, permanent secretary in the ministry, told The Gleaner on Monday that financial arrangements were being carried out for the cheque to be handed over.

"The money is not an issue, what we are working out are set guidelines that follow a contract," said Mr. Stanberry.

Last Wednesday, Agriculture Minister Dr. Christopher Tufton announced that farmers across the island will see a 10 per cent reduction in the price of all grades of fertiliser, including special blends, through the implementation of the subsidy.

10 per cent deduction

General manager of Newport Fersan, John Allen, said the organisation would deduct 10 per cent of the cost of the fertiliser before the commodity leaves the company, which would ensure that distributors only pay 90 per cent of the market value of the product.

"The only drawback is that distributors are waiting to get this 10 per cent. Distributors are calling and saying that we have not got that 10 per cent so we can't pass it on to the farmers," said Mr. Allen.

Fertiliser currently retails for between $2,200 and $2,600 per bag. With the subsidy, it is expected that farmers will pay about $2,000 per bag.

Mr. Allen said the $70 million will be applied to 12,000 tonnes of fertiliser, based on current prices.

He further noted that, based on past buying patterns, the 12,000 tonnes of fertiliser should last until March.

"It's important to note, though, that the price of raw material on the world market is still critically unstable," he said.

shelly-ann.thompson@gleanerjm.com.