An amount of D150 million had been budgeted as subsidy for groundnut, for the 2021 trade season, so disclosed Mr. Mambury Njie, Minister of Finance and Economic Affairs.
It was in response to the National Assembly Member (NAM) for Serekunda Central, Hon. Halifa Sallah, who wanted the Minister to inform the august assembly whether there is any subsidy regarding the price of groundnut for the 2021 trade season; and how the government intends to finance it.
Minister Njie also said for many years, the government of the Gambia has been subsidizing the purchase of groundnut and fertilizers for farmers, and this year 2022, is no exception. “An amount of D150 million has already been budgeted for subsidy of groundnut”, he reported.
When Sallah further asked whether the said amount has been incorporated in the 2022 budget, Minister Njie replied, “Yes, it has been.”
The Serekunda Central NAM went on to quiz whether this would be sustainable and if it is not, what is now in place to ensure that such subsidy is put to history.
Minister Njie admitted it’s not sustainable and that is the reality of the day, revealing the intention is to make sure gradually they have to exit; and to be able to put those monies into other social sectors. He told the lawmakers that government cannot immediately take off the subsidy, “but it is definitely not sustainable and is increasing exponentially”.
He reasoned that’s why the government’s deliberate policy is to ensure that they move from subsistence to commercial agriculture.
“Yesterday, we have the opportunity to [get] US$40 million grant from the World Bank, and the intention is to make sure that really, we have to uplift and move from subsistence to commercial agriculture”, he reiterated.
Njie maintained that once it’s commercial, not only the subsidies would be eliminated, but they would start to actually collect tax from them. But it is definitely not sustainable, he re-echoed.
Member for Tumana, Hon. Foday N.M. Drammeh asked whether the D150 million is totally paid; and the Finance Minister answered in the positive, emphasizing that whatever is budgeted for, has to be paid when the season commences. He explained it’s a seasonal thing and they couldn’t delay any payment when it comes to that.
Member for Wuli East, Hon. Suwaibou Touray, quizzed why the government puts subsidy for the price of groundnut, and he asked the Minister to explain the rationale behind providing subsidy for the price of groundnut.
Historically, Njie explained, what they have been witnessing is that as they give farmers the subsidy fertilizers, after the production, people across the borders and other nationals would come into the country and offer farmers higher prices and the farmers would sell their nuts to such buyers.
“So, government always tries to compete [with private buyers] to make sure that we encourage them [farmers] to sell their groundnuts locally. That is why I said, it is not sustainable,” he told the Assembly.
But he’s optimistic that when they move from subsistence to commercial agriculture, the environment would be different. He continued to say that’s based on supply and demand; that the farmer is more interested in what the earnings are and not about being nationalistic or patriotic.
