Agri SA hopes for sustainable raw water tariff increase amid consultations
Industry body Agri SA has confirmed that it will participate in national raw water tariff consultations with the Department of Water and Sanitation on August 26.
The discussions are meant to determine the cost of water for the agricultural sector and follow a sector-specific consultation on August 16.
Agri SA says the outcome of the raw water tariff consultation will have a significant impact on the viability of many farmers, since a major tariff increase could push marginal farms to the brink of collapse.
In turn, this will impact negatively on consumers and contribute to more expensive food costs.
Agri SA says it appreciates that the sector is the largest user of water resources and must, therefore, fund its share of national consumption; however, it is also vital for the country’s food security and for the sake of job security that the tariff remains at a sustainable rate.
The organisation adds that the consultation takes place at a time when farmers have been hit with numerous input material price hikes, including for fuel and fertiliser.
These prices have affected the entire agricultural value chain, especially with regard to transportation. “An above-inflation increase in the raw water tariff would only compound the inflationary pressure already prevalent on consumers.”
Agri SA says government should focus on addressing its ongoing service delivery shortcomings to farmers despite them paying the tariff, as there remain many demand management and service delivery problems in the country.
The organisation is also participating in government’s process to revise the current raw water pricing strategy, which Agri SA hopes will include the elimination of the zero-base budgeting model that introduces opacity into the budget.
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