Budget promises good tidings for Malawi farmers, slashes fertilizer to K5 000: More beneficiaries on FISP
The budget presented on Friday by Minister of Finance Economic Planning and Development Joseph Mwanamvekha promised to bring prosperity to farmers through a series of targeted interventions, from improved market access to access to credit and slashed the fertilizer prices from the current K22 000 per 50 kilogram bag to K5 000.
Mwanamvekha also disclosed that the President Peter Mutharika administration will maintain the targeted Farm Input Subsidy Programme (Fisp) if retained in power with
beneficiaries now at 1 million where vulnerable people will get free fertilizer and seeds.
He said each farmer will pay K5 000 per 50 kilogram bag.
In the same programme, government has also taken an ambitious move targeting100 000 vulnerable people, including elderly farmers and child-headed families, who will get free fertilizer and seeds.
The opposition Malawi Congress Party (MCP) and UTM Party, are pledging for a universal subsidy for a bag of fertiliser to be K4 500, but government argues that is counterproductive as s rural farmers will be exploited by unscrupulous traders.
Government fear universal subsidy would create a fertile ground for private agri-based traders to exploit rural farmers.
In his budget presentation, Mwanamvekha told Parliament that in the 2020/2021 fiscal year, the allocation to FISP has been increased from K35.5 billion spent in 2019/2020 fiscal year to K38.4 billion.
“This has resulted into an increase of the targeted farm families from 900,000 to 1.0 million.
“Madam Speaker, out of the targeted farm families, 900,000 will benefit from Government subsidy.”
He explained that that on average, each farmer pays K5 000 only per 50-kilogram bag of fertilizer. In addition to that farmers will get almost free hybrid seed.
“Furthermore, Madam Speaker, the other 100,000 of the 1.0 million beneficiaries will receive free fertilizer and hybrid seed. The free farm inputs will be given to the most vulnerable people in our communities such as the elderly, child-headed- families and people with disabilities, details of which will be covered in the Ministerial statement by the Honourable Minister of Agriculture and Food Security,” he said.
Maize Purchases
The country’s purse keeper said in the 2020/2021 fiscal budget, K10.0 billion has been allocated for maize purchases by the National Food Reserve Agency and ADMARC to restock the Strategic Grain Reserve.
“The restocking of the Strategic Grain Reserve is already underway using resources from the 2019/2020 fiscal year.
“In addition, a total of US$8.4 million, which is equivalent to K6.3 billion from the World Bank is also available for maize purchase,” said Mwanamvekha.
The Finance Minister said government’s target is to stock 220,000 metric tons of maize in the Strategic Grain Reserve, being the minimum requirement for the SGR.
“Furthermore, Madam Speaker, ADMARC will be allowed to borrow from financial institutions to purchase additional maize stock, cotton and legumes. The amount to be borrowed will be based on assessed financial capacity of ADMARC to repay,” he said.
He said government is committed to achieving household and national food security goals.
Mwanamvekha said the 2020/2021 budget has been developed under the theme “Economic Recovery, Mitigation and Building Resilience”
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I have defected to DPP because APM akayankhula zimachitika. SKC anatinamiza kuti atilipilira ndalama zachisankho koma sanatilipilire
chilima sadzatheka. Amaseza matumba koma akudziwa kuti Boma likukonza zotsitsa mtengo wa fertiliser. Nanga Mafumu duty free vehicles,100 000 free farm imputs to elderly and Poor people, chiefs medical scheme, Mbombela university komanso kuno ku nkhatabay mutimangire Orton Chirwa University kuti tisadzaiwale za nkhaza za MCP. iyi timati NYEKHWE
It’s like in an exam, one is well prepared & has all the answers but the other (DPP) doesn’t, ndiye kumangokhala kukopela basi. Kaya alibe manyazi kaya…….😡😡😡
Copy and paste ! DPP’s best ! Mpatseni madzi amwele !!
Last attempt indeed am afraid its two late. Next week chilima and chakwera must start telling people that Dpp is copying their idea therefore vote mcputm to as u have seen even Dpp is following us.
Only FOOLS and DUMB will fall for this last hour promise. where were Them when we were buying fertiliser for MK22,000. historians will remember PETER MUTHALIKA as the most treacherous, unfaithful and perfidious president in malawi.
anyway counting down is on
23rd june is cruising like sunami
DPP boma!!!!!.
Not only in Malawi but the entire world what a joker
Universal subsidy cannot be sustained. The government has been under heavy pressure from World Bank/IMF to scale down the programme because its not sustainable every year the cost is growing. Subsidies should remain restricted to the vulnerable and the commercial enterprises. IT SHOULD NOT BE EXTENDED TO EVERYONE. In a free market economy government does not fix prices of goods because this is entrusted to the market forces of demand and supply which results into an equilibrium pricing of goods. Fixing prices worked under Kamuzu (price controls) because it was dictatorship and the country had production quotas to manage the… Read more »
Joseeph Mathyola you need medical attention and you seem to be deteriorating day by day. What are you doing with all the money that you got and you are still stealing. Surely you need proper care. I don’t envy you as a minister and a rich man.
Chilima ndi Galu kwabasi. He already knew what government was in the works planning. Iye Kuwait’s ama ndi ka 500. Pachakuti pake!!
A Chakwera ndi a Chilima, lowani m’boma muzankonze zinthu. They’ve tried to copy you but just can’t quite match you.