September 25, 2009
Tanzania government increases agriculture subsidy to 50 percent
The Tanzanian government has announced a 50 percent increase in agricultural inputs subsidy from the current 20 percent to enable the farmers produce crops more efficiently, The Guardian newspaper reports Thursday (September 24).
Under the new arrangement the actual costs involved in the acquisition of fertilizers and high yield seeds would now be shared equally between farmers and the government, the Tanzanian daily said.
Agriculture, Food Security and Cooperatives Minister Stephen Wassira making the announcement at a news conference in Dar es Salaam Wednesday. "The annual national demand for high yield seeds is 30,000 [metric] tonnes, but the availability currently stands at 16,128 tonnes, equivalent to 53.8 percent of the total needs.
Efforts are underway to make sure that farmers receive the seeds, Wassira said. As for fertilizers, the minister said, the annual demand was 385,000 tonnes, while the current supply was 217,109 tonnes - equivalent to 57 percent.
"The aim is to ensure 100 percent delivery of seeds and fertilizers to the farmers. One of the strategies is for the government to cover 50 percent costs and farmers top up the remaining half," he said.
