Low inflation to mitigate drought effects- Mohohlo

475,Correspondent,, | Saturday May 9, 2015 00:00

“Inflation globally is very low so we expect the adjustment of prices to reflect that,” Mohohlo said on the sidelines of the World Economic Forum Africa in Cape Town. “When the situation calls for making appropriate adjustments we do.”

Inflation hit 3.1 percent in April, a slight increase on the previous month, and looks likely to continue to rise as food prices react to a severe regional drought, including the ‘maize belt’ in neighbouring South Africa.

The UN’s World Food Programme (WFP) said last month southern Africa faced possible food shortages due to an estimated 30 percent drop in maize output in South Africa, which produces 40 percent of the region’s main staple food.

Besides South Africa, the drought was also likely to hit harvests in southern Angola, Namibia, Botswana, Zimbabwe, Lesotho, Malawi and Madagascar, the  WFP said.

Botswana’s central bank left its benchmark lending rate unchanged at 6.5 percent in April, saying its monetary policy stance was consistent with maintaining inflation within its medium-term target range of three to six percent.

Agriculture Minister, Patrick Ralotsia early this year told journalists that ongoing assessments had already noted the telltale signs of drought around the country, particularly in the south.

“In most parts of the country, crops are already showing signs of total failure due to stunted growth, while others have reached permanent wilting point due to the prolonged dry spell and heatwaves which engulfed the country,” he said.

“In some parts of the south, we have found that even where there is moisture in the soil, the crop is unable to absorb it because of extreme heat. “Even the hardy weed known as mokate also ‘failed’ because of the heat.’

According to the ministry, at the last count, 127,800 hectares from 28,000 farmers had been planted nationwide, down from 417,000 hectares from 127,511 farmers the previous season. Although the figures are preliminary and expected to rise, the increase may not significantly alter the picture in the fields.

“Due to the unfavourable weather conditions it is anticipated that the present cropping season will be a difficult one compared to the previous one where we experienced good showers which resulted in a bumper harvest,” he said.

The poor rains also affected the availability of grazing land for cattle, diminishing livestock quality and forcing the Ministry to urge farmers to destock.“Unfortunately the grazing condition will deteriorate further as the season progresses. Cattle will lose condition or even die,” Ralotsia said.

(Reuters)