Maize floor price set

The Food Reserve Agency (FRA) says it consulted widely with all its stakeholders to arrive at the K65 per 50 kilogramme bag of maize as its buying price and that farmers must negotiate for prices that they deem better for their business transactions.

But the Zambian National Farmers Union (ZNFU) says that it will issue a comprehensive statement in due course over “alleged wide consultations” between the agency and the union as purported by the FRA. Speaking at a press briefing in Lusaka yesterday, FRA board chairperson Joe Simachela said they would only buy 500, 000 metric tonnes of grain from outlying areas starting on or before August 1, 2018 depending on the grain moisture content, adding that they will not sell the grain to millers as they will have to buy their own stocks.

“According to Government guidelines, FRA will be restricted

to purchase 500, 000 metric tonnes of grain as national strategic food reserve in outlying areas and will no longer sell grain to millers as they are expected to buy their own stocks. The FRA will sell the grain, if any, at cost reflective prices to avoid subsidies and operate within budgetary allocations. “FRA will purchase white maize at K65 per 50 kilogramme bag, soya beans at K130 per 50 kilogramme bag, and paddy rice at K70 per 40 kilogramme bag. The purchase quantities and prices for 2018 included consultations of the key market stakeholders and players such as GTAZ, MAZ, ZNFU, IAPRI and ZAMACE, just to mention a few,” Mr. Simachela said. He said FRA expected farmers to adhere to the general practice of cleaning the maize at farmsteads to avoid congestion, adding that they will maintain and operate in 796 satellite depots as the case was last year, with much concen-

tration on outlying areas.

He said the agency expected the private sector to fill in the gap on both the areas that will be left out, as well as buying the excess stocks that will not be accommodated in the FRA budget provision. “FRA expects that all its personnel and stakeholders will uphold rationality, prudence, transparency, and accountability of public resources. These crop prices are FRA prices at which the agency shall buy the crop and will not imply floor prices.

“Like in a free market economy, farmers are expected to negotiate for prices that they deem better for their business tractions and ensure reasonable income is derived and above all, that household and national food security become a priority for national development,” he said.

But when asked for a comment over consultations before the FRA purchasing price was arrived at, ZNFU president Jervis Zimba, who sounded surprised, said the union would issue a comprehensive statement in due course over those “alleged consultations”.

And FRA Chief Executive Officer Chola Kafwabulula says the agency will face some tough time buying maize considering high prices that are being offered in neighbouring countries coupled with a drop in maize production from over 3 million metric tons last year to the anticipated 2.3 million metric tons for the 20172018 crop forecast survey.

Meanwhile National Union of Small Scale Farmers of Zambia Director General Frank Kayula and Civil Society for Poverty Reduction, Patrick Shindano said they wanted more for farmers.