Tufton: The Ministry of Finance has agreed to waive these duties that companies would pay when fertiliser comes through our port. - Rudolph Brown/Chief Photographer
The cost of fertiliser will, for the second time in six months, be subsidised by the Government, according to Agriculture Minister Dr Christopher Tufton.
Tufton told a meeting of the Jamaica Agricultural Society (JAS) on Wednesday that $50 million would be provided in the form of coupons to small farmers to offset the cost of fertiliser. The meeting was held at the Denbigh show-ground in Clarendon.
He said farming agencies, such as the Rural Agricultural Development Authority, would be assigned to identify small farmers who need assistance.
"This is not long term, but helping farmers to move forward," said Tufton.
Increases
The price of a (50 kilogram) bag of the popular grades of fertiliser was increased by about five per cent to $5,150 recently, by manufacturer Newport Fersan.
Come next Tuesday, a 40-litre bag of Rescue organic fertiliser will cost $310 more, manufacturer Johnson's Organic Fertiliser Limited stated in a release.
The $50-million subsidy would equate to some $500 to $1,000 off a bag of fertiliser.
After the meeting, Tufton told The Gleaner the subsidy would take effect in a matter of weeks.
Other programmes of assistance will be implemented to reduce the cost of agriculture inputs, Tufton announced.
More than $45 million in import duties on fertiliser will be waived. "The Ministry of Finance has agreed," said Tufton, "to waive these duties that companies would pay when fertiliser comes through our port."
The minister appealed to farmers not to blame the Government for the price increases as, he said, they were caused by world conditions.
Locally, the price of fertiliser has increased at least three times since this year. An increase was added on June 2 and previously in April.
Since last September, the Government has spent more than $100 million to subsidise the price of fertiliser.
PM's warning
Prime Minister Bruce Golding warned farmers at the meeting that the Government would not be able to continue subsiding fertiliser on an ongoing basis.
"The budget cannot accommodate it," said Golding.
The farmers at the meeting, however, appealed to the JAS to distribute fertiliser, providing them with an alternative source to the commodity. Newport Fersan is the sole manufacturer of regular grades of fertiliser in the island.