It is believed that the fertiliser merchants have divided the market through collusion with suppliers who are also farmers or government officials. The collusion is said to have affected all types of fertilisers used in the country.
"Some of the farmers who buy fertilisers are actually traders. There is nothing wrong with a trader who is trying to make a few shillings by selling fertiliser. What we ought to be addressing are our procurement laws, which I believe are partly to blame for the current quagmire," Busolo says.
Spiralling fertiliser prices are being attributed to the presence of the fertiliser cartels that are collectively working towards increasing the prices.
The economic theory in the mix is that in order to maximise their profits when the chips are down, cartels must collude. They have also divided the market and restricted output in order to manipulate prices.
Food security
Mututho says there is need for Government to keep a closer look at the sector to protect farmers and guarantee food security.
The increasing influence of cartels has made it harder to make them accountable, since they lobby support from policymakers.
As a result, the consumer and new entrants to the industry have been affected by malpractices.
In 2009, President Kibaki said DAP fertiliser would be sold at a reduced price of Sh2,500 while CAN fertiliser was to retail at Sh1,650 per 50kg bag from a high of Sh6,000.
It is for this reason that the Government took over procurement of 40 per cent of the national fertiliser requirement valued at Sh6.2 billion, excluding tea fertiliser that was bought by KTDA for Sh1.6 billion.
In total, the Government and KTDA procured 163,000 tonnes of fertiliser that year.
Both Agriculture minister, Dr Sally Kosgei and the NCPB Managing Director, Dr Gideon Misoi, said distribution of the fertiliser begins today although it will still not be sufficient to satisfy the countryâs needs.
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