Maravi

ZAMACE urges government to go beyond reviewing FRA operations

ZAMACE urges government to go beyond reviewing FRA operations
By Kabanda Chulu
Mon 12 Mar. 2012, 12:00 CAT

ZAMACE executive director Brian Tembo has advised the government to go beyond reviewing operations of the FRA and support agriculture commodity exchanges that will provide various market opportunities to farmers.

Commenting on agriculture minister Emmanuel Chenda's statement that the government had revised operations of the Food Reserve Agency so that it gets back to its original mandate of buying strategic food reserves only, Tembo said limiting the role of the FRA would encourage private sector to re-enter the maize market.

"The FRA was originally designed to manage the nation's grain reserve but it has since moved beyond that mandate to become the most significant player in the maize market. This in turn draws maize out of private sector markets and creates a great deal of market uncertainty and drives up the price of Zambian maize thus making it uncompetitive in the region," Tembo said.

"So reverting FRA to its original mandate is what we have been advocating for since maize prices will better reflect prevailing market conditions, which in bumper harvest years will create viable export opportunities for Zambia but also government should support commodity exchanges to help provide reliable and alternative market opportunities to farmers."

He challenged the government to quickly present the commodities exchange Bill to Parliament for enactment so that commodity exchanges were licensed to operate in an environment that would increase its investments.

Labels: BRIAN TEMBO, FRA, ZAMACE

posted by MrK @ 5:30 PM