Tunisian fertilizer distribution system : structural and policy considerations

FERTILIZER CONSUMPTION INCREASED 109 PERCENT FROM 1966 TO 1973 IN TUNISIA. THREE FERTILIZERS ACCOUNT FOR 90 PERCENT OF THE FERTILIZER CONSUMPTION: AMMONIUM NITRATE, NORMAL SUPERPHOSPHATE (NSP), AND TRIPLE SUPERPHOSPHATE (TSP). IN THE PAST TWO YEARS, THE MINISTRY OF AGRICULTURE ESTIMATES OF NATIONAL FERTILIZER CONSUMPTION HAVE EXCEEDED ACTUAL CONSUMPTION, IN SOME CASES BY OVER 50 PERCENT. THE GOVERNMENT LEVIES TAXES ON THE SALE OF AGRICULTURAL PRODUCTS AT THE FARM LEVEL AND ON THE MANUFACTURED AND IMPORTED FERTILIZERS. BOTH OF THESE POLICIES COUNTERACT THOSE DESIGNED TO EXPAND FERTILIZER USE, BECAUSE THEY LOWER THE FARMER"S PRODUCTION INCENTIVES. AMONG THE REPORT"S RECOMMENDATIONS: THE FERTILIZER PRODUCTION TAXES SHOULD BE REDUCED. THE USE OF TSP IN PLACE OF NSP SHOULD BE ENCOURAGED. MORE TIMELY IMPORTATION OF NITROGEN FERTILIZER SUPPLIES SHOULD BE ENCOURAGED. A CREDIT PROGRAM MAY BE NECESSARY TO ENCOURAGE DEVELOPMENT OF STORAGE FACILITIES FOR FERTILIZER IN THE MAJOR CEREAL GROWING AREAS. FURTHER RESEARCH SHOULD BE CONDUCTED TO ASSESS THE POTENTIAL FOR EXPANDING CREDIT AND EXTENSION PROGRAMS.