Business Commodities

FRA to buy maize at K110

The Food Reserve Agency (FRA) has maintained the price of white Maize at K110 per 50 Kilogram bag for this year’s crop marketing season.
Addressing the media, FRA Executive Director Chola Kafwabulula said the Agency will also buy 50 Kilogram bag of Soya beans at K150 while a 40 Kilogram bag of Paddy Rice will be purchased at K70.
“Due to logistical and budgetary limitations and with no effect on the food security of the country, the agency intends to purchase three commodities as follows; white maize 1,000,000 metric tons, soya bean 3,000 metric tons and paddy rice1,000 metric tons.”
“During the 2020 crop marketing season, the FRA will buy a 50 Kilogram bag of white maize at K110, in terms of metric at K2, 200, a 50 Kilogram bag of Soya bean will be purchased at K150, and K3, 000 in terms of metric price, a 40 Kilogram bag of Paddy Rice will be bought at K70 and in terms of metric price at K1, 750,” Mr Kafwabulula said.

Mr Kafwabulula stated that the announced prices are FRA prices and not the Floor Price because Zambia does not have a floor price for Maize.

“Please note, and I repeat that these are not floor prices but rather FRA prices under the principle of willing seller and willing buyer.”

He further said the Agency held a consultative meeting yesterday with stakeholders at which the announced prices were agreed to add that the Agency expects the people who attended the meeting to support the prices.
Mr Kafwabulula also disclosed that crop purchases shall commence once the required moisture content is attained at a standard level of 12.5 per cent and shall close on 31st October 2020.
“The crop purchases shall commence immediately the moisture content is attained at the standard 12.5% level and end on 31st October 2020. The moisture content as at 28th may 2020 stood at 15.92% and projected to drop to required standards in three weeks from the last date recorded,” he said.
He said it is anticipated that the FRA prices shall not disadvantage the private sector who are expected to purchase the larger share of the 3,387,469 metric tons produced in the case of maize.

Mr Kafwabulula added that the Agency shall operate 1,200 satellite depots in 105 districts and that farmers shall be paid through designated banks upon presentation of appropriate documentation.

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