Government has no money to pay farmers – Minister

• The coffers are empty.
• Government is mobilizing funds to pay the affected farmers.
• FRA was allowed to export 450, 000 metric tonnes of maize to raise money to pay the affected farmers.

Agriculture Minister says there are no immediate plans to support farmers who supplied maize to the Food Reserve Agency (FRA) because the country’s coffers are empty.

Speaking in Parliament, Reuben Phiri said government is however mobilizing funds to pay the affected farmers.
Mr. Phiri disclosed that government recently allowed FRA to export 450, 000 metric tonnes of maize to raise money to pay the affected farmers.

“Government is aware that some farmers who supplied maize to the Food Reserve Agency have not been paid and there are no immediate plans to support these farmers. Government is mobilizing funds to pay the affected farmers,” Mr. Mtolo said.

He explained that FRA was initially tasked to buy 500, 000 metric tonnes of grain by the previous administration which has already been paid for.

“Food Reserve Agency was asked to buy 500, 000 metric tonnes of maize and we have continuously indicated that the 500, 000 metric tonnes were paid for and there is no problem with those farmers. It is the extra maize which was not budgeted for which is causing us a lot of stress, everybody in this house is feeling this stress because we are stressing our farmers we simply have no money to give them because the coffers are empty,” he added.

Meanwhile, Mr. Phiri noted that the country is in a debt crisis as a result of over borrowing by the previous regime, a move that is stressing the current government to pay the farmers.

“Some time in the 12th National Assembly, the Government of the Republic of Zambia went into a rather unbridled frenzy of borrowing funds, as a consequence of those borrowings and our continued spending on capital projects, currently our country is simply in a debt crisis.”

‘Ministry of Finance and Bank of Zambia have continuously informed us that we do not have resources. We have spent a lot of money especially the previous on subsidies for fuel and agricultural purposes such that to date, we are owing in excess of US$2 billion. As at the end of September 2021, Zambia had an external debt of US$12.9 billion,” he noted.

He further said his Ministry has engaged the Ministry of Finance and National Planning to assist with resources to pay the farmers, but the response has been there is no money.

“We have therefore allowed the Food Reserve Agency to export 450, 000 metric tonnes so that if they sale, we can use that money to pay our suffering farmers, some of whom are not on FISP and some of whom are failing to buy fertilizers and seed,” Mr. Phiri stated.

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