The Food Reserve Agency (FRA) has revised upward the price of maize to K70 kwacha from the earlier announced 65 kwacha for the purchase of a 50 kilogram bag of maize in the grain marketing season that starts on 1st august, 2018.
FRA’s swift action follows an outcry from stakeholders with the Head of State also noting the displeasure.
It was on the basis of this profound mandate that the FRA announced the 2018 Crop Marketing Arrangements as an annual requirement. The announcement of the price of Maize at K65 per 50kg bag specifically received mixed reactions from various stakeholders which necessitated further consultations.
The Board and Management of FRA have in consideration of the price band emanating from the analytical process of price determination employed by the Agency decided to review the price of Maize upwards with consideration of the following factors:
That the price;
- i) Should be within the confines of the 2018 National Budgetary allocation to FRA
- ii) Should strive to mitigate all possible negative risks that could fuel consumer dissatisfaction on the price of the final product, mealie meal.
iii) Should not disadvantage other market players
- iv) Should not pressure fund releases from the Treasury
The prices of the other Designated Crops remain the same as follows:
- Soya Beans 10,000 2.60 130 50 Kg K2,600
- Paddy Rice 2,100 1.75 70 40 Kg K1,750
The FRA being one of the players in the market intends to purchase only 500,000 Metric Tonnes of Maize, representing 21% of the 2018 National Maize Crop Forecast of 2.3 million metric tonnes, therefore the above prices are FRA prices and not Government floor prices, hence farmers are encouraged to negotiate for better prices with other market players who may buy the larger quantity of the what has been produced.
I would like to remind the farmers in the targeted areas to continue to prepare as guided in the 2018 Crop Marketing Modalities and the marketing season still opens on 1st August 2018.