Zambia releases K14.7 billion for farmer payments
The Treasury has released funds to settle outstanding payments for maize and rice supplied to the Food Reserve Agency.
The Zambian government will progressively pay farmers who supplied maize to the Food Reserve Agency (FRA), with most outstanding payments expected next month. The Treasury has released K14.7 billion to settle these dues. Acting Minister of Agriculture Situmbeko Musokotwane stated that this funding will cover payments for maize and rice delivered to the agency.
The FRA purchased 2.7 million tonnes of maize from 1,850 depots nationwide for K18.738 billion, with K4.1 billion already paid. This leaves an outstanding balance of K14.6 billion. The agency also bought 1,304.41 tonnes of rice valued at K9.7 million. Government is committed to settling all payments as funds become available.
To improve stock turnover, FRA is seeking regional markets for surplus maize, having secured sales contracts for 1.7 million metric tons for export and domestic markets. Revenue from these sales will support future procurement and maintain national food reserves, which are sufficient until the next harvest.
Why it mattersFarmers who supplied maize and rice to the Food Reserve Agency will receive their outstanding payments following the release of K14.7 billion.