The federal government has begun distributing heavily subsidised fertiliser for the current production season, and has launched a study to introduce smaller bag sizes for female and smallholder farmers.

Yet regional disparities and deep-seated attitudes toward chemical inputs threaten to blunt the effort.

The Ministry of Agriculture is conducting the study in response to repeated requests from female farmers and smallholders on less than half a hectare to set a formal standard for smaller packaging. Once approved, cooperative unions will receive bulk shipments from Djibouti and re-bag them into 25kg and 10kg units before distribution. By formalising the re-bagging, the Ministry hopes even farmers with the smallest plots can receive subsidised inputs suited to their holdings.

The initiative is intended to create a legal and technically sound alternative to unauthorised retail sales, which are now prohibited because exposing "white fertiliser" (Urea) to sunlight during loose retailing causes rapid nutrient loss. The Ministry officials continue to warn that illegal retail sales remain prohibited, particularly for Urea, which loses nutrient value when exposed to sunlight during unauthorised resale.

For the 2026 season, the Ministry has distributed 10.7 million quintals of fertiliser, backed by a federal subsidy of 84 billion Br. After 13.4 million quintals arrived at the Port of Djibouti, a logistics network moved 12.1 million quintals to central warehouses a daily inflow of up to 10,000tn carried by as many as 200 trucks. Available supply is 19.1 million quintals, including a seven-million-quintal carry-over from last year.

Distribution has increased by 1.5 million quintals compared with the same period last year, which the Ministry's officials attributed to expanded irrigation. To shield farmers from international price swings, the federal government claims to provide a subsidy of 4,972 Br a quintal.

Agriculture officials expect the subsidised fertiliser to support farming across 22.36 million hectares, targeting 730 million quintals of output. Hitting that target is seen as critical to stabilising prices for staples such as teff and wheat, which are kept under pressure by rising production costs and value chain bottlenecks.

According to State Minister for Investment & Input, Sofia Kassa (PhD), the procurement system was revised in 2024 to allow direct purchases from manufacturers, a policy decision meant to optimise foreign-currency use.

Unable to afford or fully use a whole bag on their small plots, many depend on individuals who buy full sacks and resell them in smaller amounts. A single tin now costs between 140 Br and 160 Br.

For Melese Tadele, who rents land from smallholders in the South Gondar Zone of the Amhara Regional State, every planting season brings its own economic problems. Like many on plots well below one hectare, he finds a standard 50kg bag out of reach. Instead, local farmers buy fertiliser by the tin, a local canister equivalent to one kilogram. According to Melese, the local agriculture office officially sells a 50kg bag of Urea for 5,000 Br, while "black" fertiliser (DAP/NPS) costs 6,100 Br.

"The piecemeal system is the only practical option for many," Melese said. "But it carries a cost. Buying by the tin caps the quantity farmers can afford, starving soils and lowering yields on already limited land."

The Ministry's focus is also shifting toward climate-resilient response, including fast-maturing seeds and moisture-retention techniques to soften El Niño effects in eastern zones, while balancing heavy subsidies against the need to feed a fast-growing population.

At the regional level, Leta Legesse, director for Agricultural Input under the Agriculture Bureau at the Sidama Regional State, notted that the study on re-bagging into smaller units is very significant.

"The move could matter," he told Fortune. "Fertiliser has traditionally come only in 50kg bags. In Sidama, most farmers cultivate less than half a hectare, many under a quarter."