Government through the Food Reserve Agency (FRA) has increased the buying price of a 50Kg bag of white maize from K110 in the 2020 crop-marketing season to K150 in the 2021 crop-marketing season, effectively acknowledging a 36% increase in mealie meal prices on the Zambian market.
FRA Board Chairperson Kelvin Hambwezya said the agency will purchase three commodities this year, which are white maize, with a quantity between 500, 000 to 1 million metric tonnes, a minimum of 50,000 metric tonnes of soya beans and at least 10,000 metric tonnes of paddy rice.
Hambwezya said the agency has fixed its buying price of soya beans at K500 per 50Kg bag and K200 per 40Kg bag of paddy rice, adding that the agency will operate 1,200 satellite depots in 105 districts to mop up its volumes for strategic food storage.
Hambwezya has implored management to pay farmers within 48 hours of them delivering the product adding that the farmers would be paid through designated banks upon presentation of appropriate documentation with the funds made available on first come first serve basis.
Speaking during a press briefing in Lusaka, Hambwezya said the agency will this year replenish the strategic grain reserves that will cushion the effects of threats emanating from climate change, pest infestation, fall armyworm attacks and locust invasion and ensure that the stock losses by the agency are below 1% which has always been the case.
He said during the 2021 crop-marketing season, the agency will actively participate and make an early entry into the market to ensure that national strategic food reserve requirements are met and farmers are protected from uncompetitive prices.
He added that the local farmers who are mostly the small and medium scale farmers have contributed 93% of the 2020/2021 crop production will get a fair share of the market and improve their incomes at household level by being offered good prices.
He noted that these are not floor prices but FRA prices and the private sector can offer their own prices. The FRA board chairperson that as of 5 May 2021, the combined maize carry over stock is 840, 000 metric tonnes which demonstrates that the country is food secure and will continue to be adding that the agency will make sure farmers get a competitive price.
President Lungu has further confirmed that government will continue with the quarterly allowance of maize exports to neighboring countries such as Democratic Republic of Congo. The Govt will allow the quota system to continue for both maize and mealie meal so that both farmers and millers benefit from better export prices.
