By CHUSA SICHONE –
THE Food Reserve Agency (FRA) has announced that it will buy 477,900 tonnes of white maize at K60 per 50 kilogramme (kg) bag during this year’s crop marketing season, which is a reduction both in terms of
quantity and purchase price.
The Agency will also buy 20,000 tonnes of soya beans at K130 per 50kg bag and 2,100 tonnes of paddy rice at K70 for a 40kg bag.
FRA Board chairperson Joe Simachela said at a media briefing in Lusaka yesterday that as per Government policy guidelines, the Agency was restricted to buy 500,000 tonnes of grain as a National Strategic Food Reserves during the 2017 marketing season expected to start by August 1 this year.
The Agency’s designated crops as at October 26, 2015 were white maize, orange maize, rice, sorghum, sunflower, groundnuts, soya beans and beans.
However, due to logistical and budgetary limitations, the Agency would only buy three commodities for National Strategic Food Reserves.
Mr Simachela also said that that FRA was this year, reducing its satellite depots from 1,223 countrywide to 760 and that the Agency would focus its operations in outlying areas in line with its mandate.
Mr Simachela said the Agency expected the private sector to fill in the gap in the areas that would be left out as well as purchasing the excess stocks that would not be accommodated in its budget provision.
He said FRA would no longer sell grain to millers as millers were expected to buy their own stocks.
The Crop Forecast Survey has indicated a maize production of 3.6million tonnes, 38,776 tonnes of paddy rice and 351,415 tonnes of soya beans.
On the maize market price, Mr Simachela said consideration was made to the average price currently on the open market and farm gate in May and June 2017 where the private sector was trading at an average of K60 per 50kg.
Mr Simachela said the proposed maize market price would equally ease pressure on the Treasury and marginally, reduce the financing gap already indicated in the 2017 FRA budget.
In last year’s marketing season, FRA bought 1000,000 tonnes of maize at K85 per 50kg bag.
On paddy rice, Mr Simachela said FRA proposed to increase the purchase price from K60 to K70 per 40kg bag to answer the Government’s call for crop diversification, increased production and productivity.
Mr Simachela said the K130 per 50kg of soya beans would reward the farmer with a fair return to labour for the production of the crop, boost income and improve household and national food security.
FRA executive director Chola Kafwabulula said the Agency was expected to raise about US$13 million by exporting 100,000 tonnes of maize to the Democratic Republic of Congo, Zimbabwe, Uganda, Kenya, Burundi, Tanzania and Rwanda.
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