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(DAILY MAIL) State scraps maize subsidy

State scraps maize subsidy
By NANCY MWAPE

GOVERNMENT has spent an estimated K350 billion on maize subsidies and has since stopped the exercise citing the impact it will have on the price of the new crop.

Government introduced 50 per cent subsidy to stabilize the price, but because of the pressure of demand on maize, the subsidy was increased to 100 per cent as in December last year and ended last month.

Agriculture and Cooperatives Minister, Brian Chituwo, says considering the new crop will soon be on the market, it was decided to stop the subsidy so that the price for the new harvest was not affected.

Dr Chituwo said if Government continued with the subsidies, the biggest losers would be the farmers.
In an interview in Lusaka yesterday, he said Government’s policy was to look after people in time of need.

Therefore, it had created the Food Reserve Agency (FRA), whose mandate is to administer strategic food reserves.

Dr Chituwo said FRA had spent K350 billion on maize subsidies, which was a lot of money.

“The most sustainable subsidies must be on production; not consumption. As Government, we are aware that from about October to March we have food pressures as a country,” he said.

Dr Chituwo said there was a lot of demand for maize from households and industries.

He said 60,000 tonnes was the monthly maize consumption and households consumed 50,000 tonnes.
Industries’ demand was 10,000 tonnes.

He said for industries, there was higher demand for maize arising from stockfeed and the brewing companies, which resulted in the shortage of roller meal at some point.

Dr Chituwo said it was important that companies consuming a lot of maize entered into out-grower programmes to reduce demand on maize.

Labels: BRIAN CHITUWO, FARM SUBSIDIES, MAIZE

posted by MrK @ 2:40 PM