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Nersa’s possible acceptance of Eskom’s request for a 32% increase in the electricity price is one increase too far for agriculture in South Africa.
TLU SA believes that this increase will be the death knell for several farmers in the country.
“We realise the urgency of the situation and for that reason we will send a letter to the minister of energy affairs and the treasurer. It cannot just be accepted and let go,” says TLU SA President, Mr. Darcy. Henry Geldenhuys.
“The reality is agriculture cannot afford the increase. Farmers already have to process increased prices of diesel and fertiliser (the price has increased by 150% in certain cases) to name just two. As things stand now, the situation is already dire and for some even too dire. Then I’m not even talking about the impact of load shedding yet. This hinders farmers’ ability to do their daily tasks.”
It is necessary for the government to intervene drastically. Agricultural processes are negatively affected and due to profitability, several farmers are now forced out of the production process.
Mr Geldenhuys added: “The importance of food security cannot and should not be underestimated by the government. Farmers must be kept in production. The government will have to find a way to help the agricultural sector bridge the situation through subsidies or special tariffs.”
Agriculture cannot afford this increase – TLU SA
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