By: Fatou Krubally
The Minister of Agriculture Dr. Demba Sabally, has defended government subsidies in the agriculture sector telling lawmakers that the support remains necessary as revenues from groundnut sales and fertiliser recovery fall short of costs.
Speaking during the National Assembly’s oral question session on Wednesday, Dr. Sabally said that during the last trading season, the Gambia Groundnut Corporation (GGC) bought groundnuts worth D1.3 billion, generating about D648 million in revenue. In foreign exchange terms, the sales amounted to US$9.2 million, while government subsidies covered D627 million.
“The amount realized is not sufficient to sponsor the subsequent season because the farm gate price is higher than the international market price,” the Minister explained. He said groundnuts were procured at D38,000 per ton, but when exported, they fetched an average of D25,830 per ton, creating a shortfall that requires government intervention.
Dr. Sabally assures lawmakers that GGC has the capacity to purchase up to 50,000 metric tons of groundnuts, with financing support from commercial banks, the Central Bank, and the Ministry of Finance once government-allocated funds are exhausted.
On free seed distribution, the Minister outlined that farmers across the country benefited based on assessments by regional directorates. He stressed that youth, women, and vulnerable households were prioritized, and all recipients were digitally registered. “Women in Bakau Garden are among the beneficiaries through the Roots and GAFSP projects,” he confirmed.
Turning to the issue of fertiliser, Dr. Sabally disclosed that government budgeted D507 million this year, but the Ministry procured 25,000 metric tons of NPK and urea fertilisers at a total cost of D1.43 billion. Sales are expected to recover about D550 million, leaving a D373 million financing gap, which he said was covered by commercial banks with support from the Ministry of Finance and the Central Bank.
Responding to concerns about organic fertiliser, the Minister said no new stock was purchased in 2025 because 6,000 metric tons procured the previous year had not been fully absorbed by farmers.
On the issue of the 180 government tractors, Dr. Sabally clarified that the tender was advertised in July 2024, with five bidders. Contracts were awarded to Una Enterprise and Gatch, sharing 50 percent each. He added that the Ministry was exempted from GPPA approval under a two-year waiver issued in March 2024.
Despite persistent questions from lawmakers about retendering, Deputy speaker Seedy SK Njie ruled that the Minister’s submission of procurement documents to the Clerk sufficed.
