Fuel Hike to hurt the Agriculture Sector





The removal of subsidies from fuel is expected to push the cost of production in various sectors of the Zambia economy.
The agriculture sector which is Zambia mainstay for the majority poor in rural areas will not be spared.
The Energy Regulation Board recently hiked the cost of fuel by about 30 percent citing the volatility of the Kwacha which has fallen by 30 percent against the US dollar since the previous price adjustment.
But the National Union for Small Scale Farmers of Zambia says the removal of fuel subsidies will have an adverse effect of maize production. Union accountant Henry Mukuti fears that if the cost of production goes up, many farmers will be hit hard.
And on intentions to remove agriculture subsidies, Mr. Mukuti says it will be a blow to the sector if the maize floor price will be static.
The small-scale farmers are key for national food supply. With the upward adjustment in fuel it will only help farmers if the price of farm produce is not dictated to disadvantage the farmer.

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