Maravi

Agricultural subsidies are uneconomical, says Magande

Agricultural subsidies are uneconomical, says Magande
By Joan Chirwa
Saturday September 27, 2008 [04:00]

FINANCE minister Ng’andu Magande (right) has said high agricultural subsidies are proving uneconomical considering the low crop yields being recorded in the country. And Magande said the private sector in Zambia is unwilling to mine phosphates which could provide a cheaper source of agricultural inputs.

During an extraordinary meeting of the Zambia Association of Manufacturers (ZAM) in Lusaka on Thursday, Magande said farmers need to work on their productivity beyond the current 1.3 metric tonnes per hectare recorded in the last farming season.

“Zambia utilises 200,000 metric tonnes of fertiliser, and now we have increased subsidies for farming inputs to the farmers which will see government paying 75 per cent of the total cost while farmers will pay only 25 per cent.

But despite this, yields per hectare are still very low,” Magande said. “We produce around 1.3 metric tonnes of maize per hectare currently. We have to be a little more productive and increase the yields per hectare to around three to four metric tonnes.”

And Magande said Zambia’s high phosphate and lime deposits need to be exploited for the agriculture sector.

“In Zambia, we have high deposits of phosphates but very few of the private sector want to exploit that because they want government to do so,” Magande said.

“The price of fertiliser has gone up in Zambia because the ammonium nitrate being used is made out of petrol. But if we are able to produce the phosphate and adequate lime in the country, then productivity of the farmers will be enhanced because inputs will be cheaper.”

Labels: FARM SUBSIDIES, MAGANDE, ZAM

posted by MrK @ 6:50 AM