By Wezzie Gausi
The National Food Reserve Agency (NFRA) has said price disparities between the institution and other traders on the market have affected progress of maize procurement processes.
NFRA has managed to procure 8,300 metric tonnes (mt) of maize out of the expected 11,000mt, with officials claiming that people are no longer going to its premises to sell maize.
NFRA Board Chairperson Denis Kalekeni told The Daily Times that there is stiff competition on the market where other traders are buying the commodity at as high as K600 per kilogramme (kg) compared to NFRA’s price of K550 per kg.
He said, right now, procurement is still in progress but the maize is not coming in large quantities as it used to.
“Price disparities in the procurement of maize have affected the institution. We are expected to procure another 11,000 metric tonnes if the remaining K6 billion is given to us.
“But the problem that we are having is competitors, who are buying the commodity at a higher price,” Kalekeni said
The chairperson added that what gives them consolation is that NFRA is still keeping Agricultural Development and Marketing Corporation (Admarc)’s maize under collateral with the banks.
“As we speak, NFRA has already expressed interest to Admarc to procure all the maize, which is already with us after all. This should make us reach our targeted quantity as soon as possible. We intend to close the market by mid-September and our intention is to reach the target even before the closing time,” he said.
This year, the Treasury allocated K12 billion to NFRA towards the purchase of maize but only K6 billion was released towards the cause.
Meanwhile, the Board of Trustees of NFRA will be meeting on July 28 2023 to review the maize procurement process and progress and come up with appropriate remedies to ensure that NFRA procures the targeted quantity of maize.
Last month, the Ministry of Agriculture said State produce trader Admarc will this year not be involved in maize procurement as the function will be undertaken by NFRA.
The ministry’s principal secretary Dickxie Kampani confirmed the arrangement, saying Admarc, which is mandated to ensure maize price stabilisation on the market, is not a beneficiary of the K12 billion allocated in the 2023-24 national budget for procurement of maize.
