Raw water tariff consultations must consider the inflationary impact on food
[{“type”:”text”,”content”:”Agri SA and its members appreciate that the sector is the largest user of water resources and must therefore fund its share of the national consumption. But it is also vital for the food security of the country and the sector employment that the tariff remains at a rate that keeps the sector financially sustainable.nnThe national consultations will take place on 26 August 2022, and Agri SA will be reiterating critical points it has conveyed to the department in its submissions.nnThe consultation takes place when farmers have been hit with numerous price hikes in important inputs like fuel and fertiliser. These price increases have affected the entire value chain, especially regarding the cost of transporting food to consumers, as reflected in the rising cost of food for South African households. An above-inflation increase in the raw water tariff would only compound the inflationary pressure on already squeezed consumers.nnMoreover, the government must address the ongoing poor delivery of water-related services to farmers despite payment of the tariff. The service delivery shortcomings include underspending on service delivery in some areas, poor demand management in Nelson Mandela Bay to the detriment of farmers, and the rising tariff in Klein Karoo despite farmers shouldering the burden of infrastructure maintenance and intermittent water availability.nnDiscussions are currently underway concerning the revision of the current raw water pricing strategy, and Agri SA is participating in that process to ensure that the country maintains a viable agricultural sector. The revisions to the strategy must include eliminating the zero-base budgeting model that introduces opacity into the budget.nnAgri SA is committed to supporting a fair raw water tariff regime that enables the agricultural sector to flourish. We will continue to participate in the governmentu2019s consultative procedures to protect the countryu2019s food security and the livelihoods of South African farmers and farmworkers.nnFor the Afrikaans version of this press release, [click here](https://agrisaonline.com/storage/files/rouwatertariefkonsultasie-moet-inflasionere-impak-op-kos-in-ag-neem-22-Aug.pdf)”,”position”:0,”id”:”vOFQknEqHEiiPFO2″}]