Malawi’s Farm Inputs Subsidy Programme (Fisp) delivers limited impact on food security despite consuming over two-thirds of agriculture and food-sector spending, an economist has warned.
In an interview, economist Marvin Banda said continued reliance on the scheme could undermine the country’s economic rebound.
His remarks come as many farmers benefitting under Fisp this growing season face challenges accessing farm inputs, with just 53 percent redemption rate raising fears of poor output and economic impact.
Banda said the subsidy programme accounts for more than two-thirds of total agriculture-food expenditure, yet its contribution to national output remains marginal.
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“In the 2024-25 financial year, the value of the fertiliser subsidy programme was only about 0.6 percent of GDP, which shows that it does not add any tangible value to the economy. The benefits are simply lower than the cost of the programme,” Banda said.
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He argued national food availability cannot rely on a programme reaching roughly one million beneficiaries, given its limited multiplier and value-added effects.
Banda also said Admarc and the National Food Reserve Agency control less than 20 percent of the market, limiting their influence on farm-gate prices and production incentives.
But agriculture policy analyst Tamani Nkhono Mvula said the programme remains critical for supporting poor smallholder farmers, who make up the majority of Malawi’s food producers.
“The challenges we face boil down to poor planning. Fertiliser is often delivered after crops have grown, or when heavy rains make roads impassable. Starting the programme early, say by August, would avoid many of these problems,” Mvula said.
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Mvula proposed a year-round, continuous subsidy rather than one tied to a single rainfall season or fiscal year cut-off, allowing farmers to use inputs for winter or irrigated crops if they miss the main planting season.
“The government has an obligation to support smallholder farmers who cannot access inputs on the market. If we shift production only to large-scale farmers, there will still be costs transporting food to households. Supporting smallholders to produce themselves is much cheaper,” he said.
Malawi’s economic recovery this year hinges largely on expectations of a good agricultural season to boost food supply, ease inflationary pressures and support household incomes.
Consumers Association of Malawi Executive Director John Kapito warned another bad growing season could spell doom for Malawians as food supply heavily influences commodity pricing.
Concurring with Mvula, Kapito blamed current challenges on failure by authorities to plan properly for farm inputs availability ahead of the season.
“We have a planting season and when we plant those crops, they will need the fertilizers. That is well known by every politician, every technician, and every farmer in the country. And you find that every year we have challenges to access these basic goods. Then the question that comes out, what is wrong with us?” Kapito said.
He added adequate food supply could address many problems including high cost of living and inflation, at a time when many are struggling.
In the 2025-26 mid-year budget, government increased beneficiaries under Fisp from 528,020 to 1.1 million, resulting in the programme’s allocation ballooning by K129.6 billion to K260 billion. The government also allocated K60 billion for maize purchases this fiscal year, and an extra K20 billion for maize purchase logistics in the revised.
