National Food Reserve Agency (NFRA) and Agricultural Development and Marketing Corporation (Admarc) have received an extra $15 million (about K25 billion) each for restocking the strategic grain reserves (SGRs).
The funds have been drawn from the $57.6 million (about K100 billion) the World Bank provided in April this year through its Catastrophe Deferred Drawdown Option (CAT-DDO).
NFRA director of finance David Loga in an interview yesterday said the funding adds to the K22 billion the agency received from the Treasury this fiscal year.
He said the World Bank channelled the resources to the Ministry of Finance and Economic Affairs which worked with the Ministry of Agriculture and the Department of Disaster Management Affairs (Dodma).
Said Loga: “They made decisions on how the resource can be used and concluded that we need to restock the SGRs. They have given us additional $15 million for that and Admarc also got $15 million.
“So, there are all these financing windows, still being worked on. This far, we have procured about 3 000MT, but will soon pick up because we have expanded where we are buying from.”
He said NFRA will this week conclude processes to buy the maize in bulk, expected at around 60 000MT, but the market has around 500 000MT.
Said Loga: “We have floated a tender for some suppliers who have huge quantities on a competitive bidding basis and will be awarding contracts by the end of this week.
“Initially we targeted 60 000MT for them, but the response is overwhelming, I think it is over 500 000MT. People have maize and we have also done verifications exercises, showing that people really have the quantities.”
The World Food Programme has received $15 million while $10 million has gone to the Ministry of Agriculture for crop production through irrigation.
The combined figure of $30 million can buy 69 200MT, which combined with the 29 000 MT from the initial K22 billion, would bring the total to about 98 200MT, exceeding the 82 000MT which NFRA had planned to buy this year.
However, to fill its SGRs, NFRA, requires at least 300 000 MT, meaning, the remaining 201 800MT will require an extra K151.3 billion.
NFRA will buy the maize at K750 per kg, according to a tender notice issued last week while Admarc is buying the staple grain from farmers at K700 per kg, according to its general manager Daniel Makata.
Meanwhile, Minister of Agriculture Sam Kawale has said government is committed to providing more resources towards the purchase of maize.
“Treasury has assured us that, once the resources are finished, they will provide more. NFRA and Admarc can provide that information [on how much is required],” he said in an interview.
On March 23 2024, President Lazarus Chakwera declared a State of Disaster in 23 of the country’s 28 districts and indicated that about two million farming households have been affected while 600 000MT of maize valued at K357.6 billion will be required for the humanitarian response.
First crop estimates in February showed that maize production will reach 3 608 862MT, representing a 2.8 percent increase from 3 509 837MT recorded in the final round of 2022/23 crop estimate.
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