Admarc struggling—Chiyembekeza

Minister of Agriculture, Irrigation and Water Development Allan Chiyembekeza yesterday admitted that the Agricultural Development and Marketing Corporation (Admarc) is struggling to run most of its markets due to financial constraints.
The minister said this in response to a question from Machinga Central member of Parliament (MP) Shaibu Kaliati (United Democratic Front-UDF) who asked the ministry to consider constructing Admarc depots at a number of areas in his constituency.
Said Chiyembekeza: “Admarc spends over K250 000 (US$556) [per month] to run an established market and K150 000 (US$333) to maintain a Fisp [Farm Input Subsidy Programme] market per month and this is squeezing the corporation hard.

“In most cases, economic viability is a major factor that determines the setting up of a market and government’s policy is to serve people full time rather than relying on Fisp markets. The amount of money involved in setting up an Admarc market forces the ministry to establish a market only where there is need.”

Responding to a question from Boniface Kadzamira, Ntchisi North MP (Independent), who wanted government to consider reintroducing a policy that allowed Admarc to borrow money from commercial banks at the start of the harvest season to protect farmers from being swindled by unscrupulous traders, Chiyembekeza said government is in the process of reorganising the functions of the corporation and soon it will come up with a clear policy on its functions.
In a related development, Salima North MP Kaphamtengo Yona (Malawi Congress Party-MCP) alerted the minister of “looming hunger” in his area, which is being compounded by sporadic maize supply in Admarc depots.
Said Chiyembekeza in response: “My ministry hasn’t been informed of the situation; we have a lot of maize, but the problem is communication. The ministry needs to be notified because normally there are always costs involved. Admarc is still a very relevant facility and the rejuvenation process we are undertaking will ensure that the corporation serves the citizens as expected.”