agro dealer
Agro dealers form cartel over fertilizer prices
Kasempa, December 17, Agro dealers in Kasempa district have formed up a cartel to fix a uniform price of selling fertilizers at K380 contrary to the liberalized principles of an open market system.
Agro shops across Kasempa have all pegged a 50 kilogramme of D compound at K380 while those fertilizer not attached to the E-voucher input distribution is being sold at K345.
Agro Dealers Association Chairperson James Mize said fertilizer suppliers have hiked the cost of the commodity hence the reason for most dealers having the same price.
He said most suppliers are selling fertilizers between K360 and K330 per 50 kg of d compound making the dealers to increase below 9.1 percent per bag.
However government has called on agro dealers in the district to apply the liberalized economic principles of managing agro dealership by taking advantage of the existing competition and satisfy the consumer rights.
North-Western Province Agricultural Coordinator Derrick Simukazye has since advised agro dealers to determine their prices based on how much is being put in to bring the fertilizers to Kasempa.
He said government cannot dictate the prices of fertilizers to agro dealers but it would be wrong for dealers to form a cartel and fix a uniform price on the commodities.
“It is not possible for agro dealers to have uniform price for fertilizers because they are not gettting fertilizers from the same place and supplier and therefore it appears as if agro dealers in this district have formed a cartel to fix uniform price which is not supposed to be the case in an open market,” he said.
He also pointed out that agriculture is the mainstay of the economy and it would be unfair for farmers to complain over the Farmer Input Support Programme which government is regulating.
Kasempa district is listed with the highest beneficiaries of farmers of over 14 thousand expected to acquire farming input through the E-voucher system.
And Deputy Permanent secretary Douglas Ngimbu has also directed the agro dealers to revisit the prices of fertilizers in order to satisfy the needs of farmers.
ends
Kasempa, December 17, Agro dealers in Kasempa district have formed up a cartel to fix a uniform price of selling fertilizers at K380 contrary to the liberalized principles of an open market system.
Agro shops across Kasempa have all pegged a 50 kilogramme of D compound at K380 while those fertilizer not attached to the E-voucher input distribution is being sold at K345.
Agro Dealers Association Chairperson James Mize said fertilizer suppliers have hiked the cost of the commodity hence the reason for most dealers having the same price.
He said most suppliers are selling fertilizers between K360 and K330 per 50 kg of d compound making the dealers to increase below 9.1 percent per bag.
However government has called on agro dealers in the district to apply the liberalized economic principles of managing agro dealership by taking advantage of the existing competition and satisfy the consumer rights.
North-Western Province Agricultural Coordinator Derrick Simukazye has since advised agro dealers to determine their prices based on how much is being put in to bring the fertilizers to Kasempa.
He said government cannot dictate the prices of fertilizers to agro dealers but it would be wrong for dealers to form a cartel and fix a uniform price on the commodities.
“It is not possible for agro dealers to have uniform price for fertilizers because they are not gettting fertilizers from the same place and supplier and therefore it appears as if agro dealers in this district have formed a cartel to fix uniform price which is not supposed to be the case in an open market,” he said.
He also pointed out that agriculture is the mainstay of the economy and it would be unfair for farmers to complain over the Farmer Input Support Programme which government is regulating.
Kasempa district is listed with the highest beneficiaries of farmers of over 14 thousand expected to acquire farming input through the E-voucher system.
And Deputy Permanent secretary Douglas Ngimbu has also directed the agro dealers to revisit the prices of fertilizers in order to satisfy the needs of farmers.
ends