By Thandie Chadzandiyani
LILONGWE-(MaraviPost)-Agricultural Development and Marketing Corporation (ADMARC) has been replaced in buying maize this year as Ministry of Agriculture has opted to work with the National Food Reserve Agency (NFRA).
Information shows that Treasury has already disbursed MK12 billion to NFRA to buy the staple grain for the strategic grain reserves (SGR), a move that has irked Admarc and the Parliamentary Committee of Agriculture.
Ministry of Agriculture spokesperson Gracian Lungu in an interview said the ministry normally decides who buys maize for the SGRs.
He said: “The funds are available and those are not Admarc funds, but government funds ring-fenced in the annual budget for SGRs replenishment.
“In 2020, Admarc and NFRA shared the SGR replenishment funds to procure the maize. In 2021, Admarc alone was given the whole amount and procured the maize for NFRA on behalf of government. This year, the ministry directed all the funds to NFRA to procure the SGR maize.”
Admarc and the parliamentary committee argued that the move has the potential to disrupt maize market dynamics and stifle smallholder farmers’ participation in the selling of the commodity.
Admarc board chairperson Kusamba Dzonzi said; “My board was expected to meet Ministry of Agriculture officials on this development and others issues but surprisingly this is the decision we are forced to follow”.
Sameer Suleman Parliamentary Committee on Agriculture said has backed up ADMARC saying the move favour intermediaries who are capable of supplying maize to NFRA, but will stifle operations of the parastatal.
He said unlike Admarc, which has depots nationwide where smallholder farmers can easily access the markets, NFRA does not have a network, making it logistically not viable for smallholder farmers to move their maize to Lilongwe due to transport challenges.
“This government had promised to empower smallholder farmers through Admarc, but now this move confirms our fears that the same government that promised to revamp Admarc want to shut it down and concentrate on NFRA,” said Suleman.
Admarc may not be able to survive if nothing is done withing the next few months Suleman has warned
