Updated:06:40:04
The country’s small holder farmers expecting to benefit from 2015/2016 Farm Input Subsidy Program (FISP) must prepare to dip deeper in their pockets due to government decision by hiking the inputs costs from MK1, 500 to MK8,500.
Minister of Agriculture Irrigation and Water Development Allan Chiyembekeza broke the news on Thursday, August 7, 2015 through press conference in the capital Lilongwe when he was updating the nation on the final crop estimates billion kwacha (US$152.3 million). Report and reforms taken.
Minister Chiyembekeza said the decision to increase the inputs’ cost was arrived upon analyzing proposals various country’s agriculture stakeholders and donors made that FISP was costing government heavily at the expense of other public sectors’ acute of funds to run their activities properly.
“The Ministry is implementing the Farm Input Subsidy Program (FISP) for the 11th year this 2015/2016 agricultural season whose objective is to achieve food self sufficiency and increased income of resource poor households through increased maize and legume production.
“For the 2015/16 agricultural season, the Government has allocated MK 41.5 billion for the program targeting 1.5 million beneficiaries and will procure and subsidize 150,000 metric tons of fertilizer (75,000 metric tons for NPK and 75,000 metric tons for urea) such that procurement will be done by the Smallholder Farmers Fertilizer Revolving Fund of Malawi.
“As part of the FISP reform, the private sector will be involved in the supply, distribution and direct retailing of 30,000 metric tons in eight districts namely; Chikwawa, Neno, Balaka, Dedza, Mchinji, Salima, Nkhata-Bay and Chitipa. This is being done on a pilot basis to assess the efficiency and effectiveness of the programme when using the private sector. The remaining 120,000 metric tons will be retailed though ADMARC and SFFRFM in the other 20 districts just like in the previous years.
“This year, the programme beneficiaries will be contributing MK3, 500 each for Urea and NPK (a total of MK7, 000 for the two types of the fertilizers); MK1000 for maize seed; and MK500 for legume. The total amount to be contributed by the farmers will therefore be MK8, 500.Bids for fertilizer were opened on 31st July 2015and evaluation is under way, while bids for transporters will be opened on 7th August, 2015”, announces Dr Chiyembeka.
On the Agriculture Production Estimate Survey (APES) final report, the Minister said the country’s food shortage was at 30.2% contrary to the second estimates which was made in April 2015 but assured Malawians that precaution measures were in place to address looming hunger across the nation.
“The just ended season was not favorable in terms of crop production. The commencement of our planting rains was delayed, the rainfall pattern was erratic. We also had floods in January and prolonged dry spells within the season. These phenomenons had negative implication on the physiological development of our crops in almost all parts of the country. Consequently our APES results for the year have registered reduction in almost all crops.
“The third round APES results show that maize production has decreased from 3,978,123 metric tons realized in 2013/2014 agricultural season to 2,776,277 metric tons in the current agricultural season. This represents 30.2 percent decline in production contrary to the second round the Ministry estimated maize production at 2,876,660 metric tons. The current estimate is at 2,776,277 metric tons translating into a 3.5 percent further decline.
“Estimation in terms of maize requirement based on the population projection and industrial use for the year is at about 3 million metric tons. Out of the national maize requirement, for food use only we require 2,563,601 metric tons while the rest is required for seed, feed and industrial use; and replenishment of the Strategic Grain Reserve. Based on the national maize requirement and third round estimates, the country will have a maize deficit of 223,723 metric tons. This is the actual national maize deficit for the country.
This is higher by 4.1 percent as compared to the 123,340 metric tons we projected in the second round.
“The third round APES results also show that production of other major food crops such as rice, millet, cassava and sorghum is down by 17.7%, 20.6%, 1.8%, and 14.9%, respectively. However, potatoes and sweet potatoes have increased by 4.1% and 2.7%, respectively. We have also registered some production decreases on some of our cash crops. For instance, cotton is down by 40.1% while groundnuts production is down by 25.4%.
“In terms of livestock, the population of cattle has increased from 1,316,799 to 1,398,376, representing 6.1 percent increase as compared to the final round for the 2013/14 agricultural season. The populations of goats, pigs and chickens have also increased by 11.3 percent, 16.5 percent and 14.6 percent respectively mainly due to increases in births as a result of improved management practices.
Fish production is estimated to have increased from 119,994 metric tons to 121,104 metric tons showing 0.9 percent increase in production.
“Therefore, Government has allocated about MK15 billionin the national budget for procuring maize to meet food need of the population countrywide. Assuming a maize price of MK130 per kg, the MK15 billion can buy about 115,000MT, thus, if we diversify our meals to other food crops, there will be less impact of hunger in the country”, assures Dr Chiyembekeza.
President Bingu WA Mutharika introduced the Farm Input Subsidy Programme (FISP) in 2005 to improve national food security and lift the productivity of smallholder farmers after several years of drought brought poor harvests.
Earlier the scheme was widely seen as successful in achieving both goals, but expensive. During the 2010/11 farming season 1.6 million farmers received vouchers to buy heavily subsidized fertilizer and maize seed, costing the government and donors 23
