Malawi faces devastating fertilizer shortage due to forex: Only 150 000mt available out of the needed 400 000mt
Malawi’s fields are on the brink of despair as the country faces an alarming fertiliser deficit, with only 150,000 metric tonnes (mt) of the critical input available against an annual demand of 400,000mt. The shortfall, driven by acute foreign exchange (forex) challenges, has cast a shadow over the country’s agricultural season, threatening food security for millions.
In a country where farming is not just a livelihood but a lifeline, fertiliser is the fuel that drives agricultural productivity. For decades, Malawi’s maize fields, the backbone of its food supply, have relied on the timely application of fertiliser. Yet, this year, those lifelines are dwindling fast, leaving farmers and stakeholders in a race against time.The Fertiliser Association of Malawi has sounded the alarm: Malawi is drastically understocked. Importers are struggling to secure the much-needed foreign currency to procure fertiliser from international markets, leaving shelves nearly bare.
“Malawi’s normal annual fertiliser consumption is 400,000mt,” said Mbawaka Phiri, administrator for the association. “However, due to financing and forex constraints, we are looking at importing only 200,000mt to 250,000mt this year. This leaves us with a minimum deficit of 150,000mt.”
This deficit is not just a statistic—it’s a harbinger of widespread hunger and economic strain. Without sufficient fertiliser, crop yields will plummet, driving up food prices and deepening poverty in a country already grappling with economic instability.
The crisis is compounded by global market dynamics. Prices for Di-Ammonium Phosphate (DAP) have soared to $573.4 per mt as of October 2024, up from $554.8 in September, while urea prices have spiked to $374.8 per mt from $337.5.
The Reserve Bank of Malawi attributes these hikes to increased global demand, particularly from India, and geopolitical tensions between Israel and Iran that have disrupted production and supply chains. For Malawi, which relies heavily on imported fertiliser, these price surges are another blow to an already constrained system.
In the heart of Malawi’s agricultural regions, anxiety is palpable. Farmers who depend on subsidized fertiliser under the Agricultural Input Program (AIP) are finding it increasingly difficult to access the commodity.
“I’ve been to three depots, and there’s no fertiliser,” lamented Esther Chikondi, a smallholder farmer from Kasungu. “If we don’t apply fertiliser soon, our crops won’t survive. How will we feed our families?”
The government’s AIP, intended to cushion vulnerable farmers, is under immense strain. With limited forex and rising global prices, procuring subsidized fertiliser has become an uphill battle.
The fertiliser crisis is not just an agricultural issue—it’s an economic ticking time bomb. Agriculture accounts for over 30% of Malawi’s GDP and employs the majority of its population. A failed planting season could send ripples through the entire economy, from reduced exports to skyrocketing inflation.
Moreover, the ripple effects extend beyond farming. With fewer crops to harvest, food prices will inevitably rise, further straining already overstretched household budgets.
The looming crisis has sparked calls for immediate government intervention. Stakeholders have proposed measures such as sourcing concessional loans to boost forex reserves, negotiating bulk purchases with suppliers, and ramping up local fertiliser production to reduce dependence on imports.
But time is running out. As the rains begin to fall, farmers are preparing their fields with hope that fertiliser will somehow reach them in time. Without urgent action, that hope may wither like unwatered crops under the Malawian sun.
For now, the nation watches and waits as the fields of promise turn into fields of uncertainty, and the specter of hunger looms ever larger.
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