FRA announces minimal increase of K5 for maize floor price
By Staff Reporter
THE Food Reserve Agency has revised the just announced floor price of a 50 kg of white maize from K65 to K70.
Addressing a rally at Mafuta Primary School in Chipangali, Eastern Province, to drum up support for Chipangali district council by-election candidate Million Tembo on July 22, President Edgar Lungu said the government was going to re-visit the floor price because K65 announced by the Food Reserve Agency (FRA) on July 20 was not a very fair price.
“I read in the newspaper that the price has been pegged at K65. I had told the Minister of Agriculture to consult stakeholders like the Zambia National Farmers’ Union, Small-Scale farmers and everyone concerned before they set the price. When I spoke to the Minister last night, I was told they were given a range; there was a minimum figure and a maximum figure but FRA settled for K65. I don’t think it’s a very fair price!” said President Lungu, adding that the K65 price would be reviewed and adjusted upwards.
“If we don’t help the farmer, there will be no food [and] at the same time we want to provide affordable food to the consumer. So, we have to strike a balance that will benefit the farmer and at the same time the consumer is not supposed to be exploited. In conclusion on this particular point, I want to assure you and the nation that we’ll re-visit the price of maize. In short, we are adjusting upward!”
In a press statement yesterday, FRA board chairperson Joe Simachela stated that in setting the designated crop prices, the Agency always adhered to the principle of holistic consultation of the key stakeholders in the agricultural sector in the crop marketing chain from production to consumption.
“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,” Simachela stated.
“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.”
He added that the FRA maize price shall be fetching for K70 from K65.
“The prices of the other designated crops remain the same…. The FRA being one of the players in the market intends to purchase only 500,000 metric tonnes of maize, representing 21 per cent 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 what has been produced,” stated Simachela.
