The price of fertiliser is soaring dramatically on the world market, putting pressure on the pockets of farmers in Saint Vincent and the Grenadines.
Speaking on State Radio on Wednesday, Prime Minister Ralph Gonsalves said the next shipment of fertiliser, about 4500 sacks, should arrive in two instalments since it had been delayed.
Gonsalves said a memo from Agriculture Minister Saboto Caesar would be brought before the cabinet regarding the shipment.
“We are having difficulties getting fertiliser, as well as price problems. The subsidy for the fertiliser shipment could be as high as $384,000. The fertiliser price has shot up because of what is happening in Ukraine, and before that because of oil prices”.
Gonsalves said that the Input Warehouse usually subsidises up to $20 per sack. To cross-subsidise, the government would use sugar profits. However, even sugar is problematic because its price has increased.
“The subsidy on the last shipment of fertiliser was nearly $50 per sack. It needs to be more now, but the Input Warehouse can’t bear it, so I had to get the Central Government involved”.
Gonsalves said if the price continues like this for the rest of the year, “God, Heavenly Father”.
According to Gonsalves, another three fertiliser shipments will occur between now and the end of 2022.
At the current price, four shipments equate to $1.5 million in subsidies, Gonsalves said.
In just a few weeks, following Russia’s invasion of Ukraine, the price of fertiliser exploded across Europe. Fertiliser prices went from €150 and €200 (per ton) a year ago, to €800.
Russia is a key player in the fertiliser market. Last year, the country was the leading exporter of nitrogen fertilisers and the second-largest supplier of potassium and phosphorus fertilisers.
