South African commission calls for reduced dependency on agricultural imports

Johannesburg, Jan 13 (IANS) The Competition Commission of South Africa published a report Monday, raising concerns about the country's heavy reliance on imported agricultural inputs, including fertilizers, agrochemicals, and seeds.

According to the report, titled Fresh Produce Market Inquiry, reliance on imports "exposes the fresh produce supply chain, and the agricultural sector broadly, to global price fluctuations. This creates uncertainty in the market and has the potential to impede, restrict, or distort competition."

The report recommended that "the Department of Trade, Industry, and Competition should implement measures to support the local or domestic fertilizer industry, where there is domestic capability." South Africa's Trade, Industry and Competition Minister Parks Tau received the report in Johannesburg and pledged to table it in parliament.

The report also called for improved collaboration between the Directorate of Agriculture Inputs Control, within the South African Department of Agriculture, and private firms to build local capacity and reduce reliance on imports, Xinhua news agency reported.

The Fresh Produce Market Inquiry, which was started on March 31, 2023, to probe South Africa's fresh produce market, identified several concerns, including barriers to competition, high input costs, and systemic barriers to entry for small-scale farmers. It emphasised that reducing dependency on imported inputs would lower costs and improve the competitiveness of local farmers.

At a media briefing held Monday, Hardin Ratshisusu, Deputy Commissioner of the competition commission and chairperson of the Fresh Produce Market Inquiry, said that the report provides insights into the issues and challenges that should be addressed in the local market.

Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa, revealed that the country was importing about "80 per cent of its annual fertilizer usage of two million tonnes, and 95 per cent of various agrochemicals."

"This means farmers are exposed to various global shocks, and rising input costs. For new entrant farmers with limited resources, this could be a challenge. Thus, there should be government support or affordable finance for new entrant farmers at the start," he told Xinhua.

Disclaimer: This story has not been edited by the Sakshi Post team and is auto-generated from syndicated feed.