N$40m grain fund may fall short

The N$40 million secured by the government to buy grain from local farmers may not be enough to purchase all the produce currently in storage, the Ministry of Agriculture, Fisheries, Water and Land Reform says.

Ministry spokesperson Romeo Muyunda over the weekend said the money is an initial intervention to help farmers who have struggled to find a market for grain produced during the previous season.

“The ministry acknowledges that the N$40 million may not be sufficient to procure all grain currently held by farmers,” Muyunda said.

He said the ministry is looking for more funding to expand the procurement programme. The government secured the money after farmers raised concerns about limited market access. Some farmers still have grain in storage while waiting for buyers.

The ministry has channelled the N$40 million through the Agro-Marketing and Trade Agency (Amta), which will buy the grain and inform farmers about the requirements.

Muyunda urged Amta to expedite the process, as farmers have already endured a lengthy wait to sell their produce.

Zambezi Progressive Farmers member Alberts Kulobone has welcomed the funding, but says its impact will depend on how much grain is available, the prices offered and how quickly farmers are paid.

Kulobone says farmers need prices that cover their production costs.

“The meaningfulness will depend on whether the allocated amount matches the actual surplus available in the production zones and whether the buying price is competitive and covers farmers’ production costs,” he said.

He said prompt payment and efficient grain collection are important.

“Delayed payments in the past have discouraged production. A one-off purchase is welcome relief, but a structured, long-term procurement framework would provide more certainty and incentivise increased production,” he says.

Likwama Farmers Union chairperson Alfred Chilinda told Farmers Inside Track yesterday that this year’s harvest is much larger, with the area under production increasing from about 6 000 metric tonnes in a normal season to more than 9 000 metric tonnes.

He said the larger harvest has put pressure on the market, leaving some farmers waiting longer to sell.

Chilinda warned that some farmers do not have chemicals to protect stored grain against weevils.“By the end or middle of October, farmers will have great loss because then the weevils will attack their grain,” he said.

He said Amta’s return to the market has brought some relief.

However, he remains concerned about farmers who may only sell in October or November.

“But what about those that will be selling around the end of October or the middle of October? They are not happy,” he said.

Chilinda called on other buyers to purchase grain from farmers still waiting for a market.

“I’m still very sceptical whether all farmers will be saved and saved from getting their money back,” he said.

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