KAYPRO Research Institute (KRI) says the one billion Kwacha government has released for this year’s maize purchases is a drop in the ocean.
Organization Chief Executive Officer Dr. Frank Kayula told Money FM News in an interview that the money is not enough as it cannot buy the One million metric tonnes of maize that government intends to purchase during this year’s crop marketing season.
Dr. Kayula stressed the need for government to release some more money to the Food Reserve Agency (FRA) because the Agency needs money for salaries, to set up satellite depots, and personnel to be purchasing the maize.
“That is so little and that is a worry. If you release one billion kwacha and you want to buy one million metric tonnes of maize, what about those who have not yet been paid, what about the operations of the FRA?”
“They need money for salaries, they need to set up satellite depots, they need personnel to be purchasing the maize, so one billion I hope it’s just the beginning, they need to release more money to FRA if FRA is to succeed,” Dr. Kayula said.
Meanwhile, Dr. Kayula said it is extremely unfair for government to release funds for this year’s maize marketing season when some farmers who supplied their produce last year have not yet been paid.
He said if possible, government should put up a law so that they do not get maize on credit and fail to pay because this situation puts farmers in a very awkward position as they cannot invest and reinvest into their production systems.
“That is extremely unfair, there is no business person who can continue standing, when the money is locked up by the debtors or creditors, we have been calling for a long time now that if possible government should just put up a law so that they don’t get things on credit and fail to pay.”
“It puts the farmers in a very awkward situation where they cannot invest and reinvest into their production systems, and as a result, farmers are highly dependent on the government to ensure that they invest in their agriculture sector particularly maize, it’s not supposed to be like that,” he stated.
Dr. Kayula urged government to ensure that farmers are able to make their own money and with time start investing back into their cropping systems.
“If we continue getting maize on credit, then the farmers will always be dependent and this situation is not good,” he added.
On Friday last week, Secretary to the Treasury, Fredson Yamba announced the release of a cumulative K1 billion to ensure active participation of the Food Reserve Agency in the 2020 crop marketing season and facilitate attainment of national strategic food reserve requirements.