Maravi

FRA releasing K150 bn every week for farmers – Siame

FRA releasing K150 bn every week for farmers – Siame
By Chiwoyu Sinyangwe
Mon 04 Oct. 2010, 04:00 CAT

THE Food Reserve Agency is releasing K150 billion every week to quickly buy maize from local farmers before the onset of rains which threatens grain safety, spokesperson Mwamba Siame said yesterday.

In an interview, Siame said following the extension to the current marketing season from closing last month to end of October, FRA planned to disburse huge amounts of funds to expedite payments to the farmers. Siame said FRA had an indefinite budget whose target was to buy as much grain from the farmers.

She said FRA paid K306 billion with the latest release of K80 billion on Friday last week.

“The Food Reserve Agency has maintained that farmers are being paid amid opposite views,” Siame said. “Another K150 billion will be released next week. A total of K150 billion will be disbursed every week until all the farmers have been paid. This funding is a combination of government injections and the loan accessed from banks.”

Siame, who did not immediately state the names of banks, urged local banks involved in paying farmers to ensure that their system remained alert to huge amounts that are to be paid to farmers and they have been responsive so far.

“K150 billion is a lot of money especially for smaller bank branches,” she said. “We are aware that with these amounts, it is possible that these banks get overwhelmed and as a result have challenges to cope. So, what we are saying… is appealing to these institutions that they prepare their systems and if possible employ more people to avoid unnecessary delays in clearing farmers.”

And Siame said FRA expected regional countries to start up-taking maize from Zambia as grain stocks start to dwindle.

Zambia currently plans to export 160, 000 metric tonnes of maize from previous harvest, with a possibility of this number swelling to about 600, 000 metric tonnes depending on the decision of Stock Committee following the current bumper harvest, according to Siame.

Siame anticipated that maize demand and price in the region was expected to rise in the periods from October to February next year according to annual patterns.

“The FRA has exported 82,000 metric tonnes to Zimbabwe and projects that the market prospects will continue to improve and offer a better price… because if you look at Namibia and Botswana, their grain marketing bodies, you see the grain levels are declining despite having surplus at one time” said Siame.

Labels: FRA, MWAMBA SIAME

posted by MrK @ 12:10 PM