Ministry opts for NFRA in maize deal

Ministry of Agriculture has opted to work with National Food Reserve Agency (NFRA) in buying maize this year instead of the State produce trader Agricultural Development and Marketing Corporation (Admarc).

Already, Treasury has disbursed K12 billion to NFRA to buy the staple grain for the strategic grain reserves (SGR), a move that has irked Admarc and the Parliamentary Committee of Agriculture.

Admarc and the parliamentary committee argued that the move has the potential to disrupt maize market dynamics and stifle smallholder farmers’ participation in the selling of the commodity.

In an interview on Monday, Ministry of Agriculture spokesperson Gracian Lungu said the ministry normally decides who buys maize for the SGRs.

He said: “The funds are available and those are not Admarc funds, but government funds ring-fenced in the annual budget for SGRs replenishment.

“In 2020, Admarc and NFRA shared the SGR replenishment funds to procure the maize. In 2021, Admarc alone was given the whole amount and procured the maize for NFRA on behalf of government. This year, the ministry directed all the funds to NFRA to procure the SGR maize.”

But in a brief interview on Monday, Admarc board chairperson Kusamba Dzonzi expressed surprise at government’s decision, saying his board was expected to meet Ministry of Agriculture officials on this development and others issues.

Admarc spokesperson Agnes Ndovi also confirmed that the responsibility of buying maize has not been given to Admarc.

Parliamentary Committee on Agriculture chairperson Sameer Suleman said on Monday the move favour intermediaries who are capable of supplying maize to NFRA, but will stifle operations of the parastatal.

He said unlike Admarc, which has depots nationwide where smallholder farmers can easily access the markets, NFRA does not have a network, making it logistically not viable for smallholder farmers to move their maize to Lilongwe due to transport challenges.

“This government had promised to empower smallholder farmers through Admarc, but now this move confirms our fears that the same government that promised to revamp Admarc want to shut it down and concentrate on NFRA,” said Suleman.

He warned that if nothing is done within the next six months, Admarc may not be able to survive.

Last year, Admarc had planned to source K95 billion to buy 410 000 metric tonnes (MT) of maize and cash crops, but it only secured K25 billion and bought 133 000MT of maize and other crops.

Earlier, Admarc indicated that it will need K48 billion for buying maize this year.