Forex challenges hit Fertiliser manufacturer
HARARE- Government-linked fertilizer producer FSG says forex challenges are likely to hit on their preparations to supply fertiliser to the Presidential Input Scheme beneficiaries during the impending 2019/2020 summer cropping season.
Speaking to media on Friday, the company’s MD Steve Morland said challenges to access the required raw materials which come from Morocco and Saudi Arabia are their biggest hindrance at the moment.
“The delay in accessing forex through our letters of credit is likely to see us not meeting our contract, but once our LCs are opened with can access the raw materials and production resumes,”he said.
Morland added that the company had set up a 500kva generator to cushion itself from power outages being experienced lately.
He also said, Government has contracted the company to produce 63 000 tonnes of compound D fertiliser and 63 000 tonnes of Ammonium nitrate, which requires over US$10 million to produce.
The Presidential Input Scheme now remains the only Government funded agricultural programme after placing Command Agriculture into the hands of private financiers.
According to Government statistics, about 2 million households are expected to benefit from the Presidential Input Scheme this season.