Zimbabwe Suspends Import Tax on Fertilizers

Due to the potential adverse effects of El Niño weather conditions in the future, the Zimbabwean government has suspended the import tax on nitrogen fertilizers to reduce input costs and ensure increased food production before the onset of the agricultural season.

The United Nations Food and Agriculture Organization (FAO) has warned that El Niño, a natural climatic phenomenon in which the surface waters of the central and eastern Pacific become abnormally warm, leads to changes in weather patterns worldwide and might impact the agriculture and food security of certain countries during the 2023/24 agricultural season.

Over the past two years, farmers have been grappling with high fertilizer prices. Firstly, a rise in natural gas prices increased the production cost of nitrogen fertilizers in 2021. Secondly, there was the influence of conflicts between major producers Russia and Ukraine.

In Zimbabwe, fertilizer prices surged by about 30% during this period. Currently, the average price for a 50kg bag of base fertilizer is $45, and a top-dressing bag is about $60.

A government notice revealed that Zimbabwe, which has long been facing food crises, will exempt up to 250,000 tonnes of urea and ammonium nitrate from import tax. This policy will be suspended for 12 months from the date of its issuance, and both products are vital for plant growth.

In recent years, the production of maize, a staple food, has increased with the support of government-subsidized inputs. However, many families in the country are still experiencing a food crisis and rely on aid.

In April of this year, the Zimbabwean government stated that Zimbabwe produced 2.3 million tons of maize, just enough for human and livestock consumption.