Maravi

FRA, millers in talks over maize purchase

FRA, millers in talks over maize purchase
Written by Chiwoyu Sinyangwe
Friday, January 09, 2009 5:29:42 AM

FOOD Reserve Agency (FRA) has started negotiations to purchase
maize from some millers for reallocation in an effort to stabilise mealie-meal prices in Zambia, executive director Dr Anthony Mwanaumo has disclosed.

In an interview, Dr Mwanaumo said the millers who were currently negotiating with FRA were mainly from the Copperbelt as they had excess maize stocks.

Dr Mwanaumo could not however give any details of the transaction, saying the process was currently at negotiation stage.

He said FRA would issue a comprehensive statement once the deal was completed.

“We are in discussion with those millers who have excess maize so that we can see how best we can stabilise the prices of mealie meal throughout the country by offloading onto the market subsidized maize,” he said.

And Dr Mwanaumo disclosed that FRA was still working on the total cost implication of the decision to offer maize to milling companies at a subsidised rate.

“As you know we reduced the price of maize, so the price differential is inbuilt in the same support we receive from the government because we are a grant-aided institution,” said Dr Mwanaumo. “So, by reducing the price of maize, we are still working on the cost implications of that and we shall submit to the government.”

Antelope Milling managing director Eleftherios Kaldis disclosed on Tuesday that his company had struck a verbal agreement in which FRA would buy off the maize stocks from them and re-allocate it at a cheaper price.

Last month, FRA announced a reduction in the price of maize from K63,000 to K55, 000 per 50 kilogramme bag, an initiative aimed at cushioning the price of mealie meal which had skyrocketed to an all time high of around K70,000 in some parts of the country.

Labels: ANTHONY MWANAUMO, FRA, MAIZE, MILLERS

posted by MrK @ 5:30 AM