By Wezzie Gausi:
The National Food Reserves Agency (NFRA) has announced that the government has increased its budget allocation for procurement of maize from K12 billion to K22 billion.
NFRA Chief Executive Officer George Macheka told journalists in Lilongwe yesterday that out of the K22 billion, NFRA has already received K10 billion for immediate purchase of grain.
He said, this year, NFRA intends to procure 82,000 metric tonnes of maize in the initial phase.
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“The increase in the amount allocated to NFRA for maize buying is testament of the government’s unwavering commitment to food security in the country.
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“The Strategic Grain Reserves (SGR) is pivotal in this regard, as it ensures that the country has adequate reserves of grain to respond to humanitarian, emergency and price stabilisation requirements,” Macheka said.
Commenting on the increase of funding, Secretary to the Treasury Betchani Tchereni said stabilisation of Malawi’s macroeconomic fundamentals needs to deal with the variables that have significant contribution to inflation.
He said, in this case, food inflation contributes to the birth of 40 percent of headline inflation.
“As such, we felt that it’s important to ensure that the grain reserves must be stocked with enough maize to help regulate prices during the lean season.
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“In addition, because we already have contract farmers who are participating in the Mega Farms project, it is imperative that other farmers too must benefit. We are doing this together with the winter cropping activities which the Ministry of Agriculture has seriously embarked on,” Tchereni said.
Mwapata Executive Director William Chadza said the move would address food shortages as the grain reserves will be well stocked.
He said this is particularly important considering that agricultural production during the 2023-24 season was negatively impacted by El Nino characterised by the late onset of rains, dry spells and floods in some areas.
“Timely disbursement of the budget is crucial for achieving the set objectives,” Chadza said.
Meanwhile, NFRA said it would buy maize at a government price of K650 per kilogramme and the commencement of buying in all its depots will begin on Monday, May 13 2024.
This year, NFRA expects the Strategic Grain Reserves stock to exceed 100,000 metric tonnes. This excludes the maize that the government is mobilising outside the scope of SGR to respond to the prevailing El Nino-induced food shortage.
