THE PRICE of fertilisers manufactured by Antilles Chemical Company will be increased effective today, January 7.
The increases range from 19 per cent to 29 per cent for blends, and 19 per cent to 46 per cent for straights, with urea recording the highest increase of 46 per cent.
These increases resulted from the twin effect of increased raw material prices on the world market and the continued devaluation of the Jamaican dollar vis--visits US counterpart.
Fertiliser prices were last increased in January 2001. At that time, the exchange rate was $45.6. to US$1. It is now around $51.50 to US$1 and seems destined for further decline. This represents approximately 13 per cent devaluation.
"Urea, one of our major fertiliser raw materials, went up by in excess of 30 per cent during the latter part of December 2002 and seems set for further increases over the short term. It is due mainly low domestic inventories in the USA and higher natural gas cost. Supplies from Venezuela are also restricted due to the political problems they are now experiencing and the closure of one of their main plant," said R. Pat Rose, president and CEO of Antilles Chemical Company.
In a statement yesterday, he said farmers should remember that the prices of fertiliser raw material fluctuate on the world market from time to time. "As we have done in the past, any reduction in raw material prices will result in a corresponding reduction in fertiliser prices," he said.
THE PRICE of fertilisers manufactured by Antilles Chemical Company will be increased effective today, January 7.
The increases range from 19 per cent to 29 per cent for blends, and 19 per cent to 46 per cent for straights, with urea recording the highest increase of 46 per cent.
These increases resulted from the twin effect of increased raw material prices on the world market and the continued devaluation of the Jamaican dollar vis-à-vis its US counterpart.
In an initial reaction to news of the increase last night, president of the Jamaica Agricultural Society, A.A. 'Bobby' Pottinger, said farmers would be hard hit.
"Farmers can't move the price of their produce to the same extent as the increase. We would have expected that Antilles, the sole local manufacturer of fertiliser, would at least have called us in to say this is the problem we are facing and see how best we could discuss ways to address the matter collectively," he said. Banana, sugar and citrus farmers were likely to be worst affected, he said.
Mr. Pottinger said farmers would have to look overseas for cheaper fertilisers.
Fertiliser prices were last increased in January 2001. At that time, the exchange rate was $45.6. to US$1. It is now around $51.50 to US$1 and seems destined for further decline. This represents approximately 13 per cent devaluation.
"Urea, one of our major fertiliser raw materials, went up by in excess of 30 per cent during the latter part of December 2002 and seems set for further increases over the short term; it is due mainly to low domestic inventories in the USA and higher natural gas costs. Supplies from Venezuela are also restricted due to the political problems they are now experiencing and the closure of one of their main plant," said R. Pat Rose, president and CEO of Antilles Chemical Company.
In a statement yesterday, he said farmers should remember that the prices of fertiliser raw material fluctuate on the world market. "As we have done in the past, any reduction in raw material prices will result in a corresponding reduction in fertiliser prices," he said.
