twitter RSS Feed linkedin acp contact

Maize subsidy removal to increase price of Zambian mealie-meal

Mealie-meal prices are set to rise after the Zambian government removed a subsidy on maize

Maize. (Image source: Sebastian Maćkiewicz/Wikimedia Commons)Maize. (Image source: Sebastian Maćkiewicz/Wikimedia Commons)

The maize subsidy enabled millers to offer stable prices of mealie-meal to consumers.

According to The Times of Zambia, agriculture and livestock minister, Bob Sichinga, said that the move was designed to reduce government losses incurred because of the subsidy.

The minister said that the government, via the Food Reserve Agency (FRA), had been incurring the losses for a long time when buying maize from small-scale farmers and selling it at a lower price.

"Cabinet has reluctantly authorised the removal of the miller-consumer subsidy," said Sichinga. "The implication of this removal is that the price of our staple food mealie-meal will inevitably have to rise."

He added that the original FRA budget had been exceeded by as much as 2,632 per cent between 2009 to 2012 and said that the FRA would continue to make heavy losses if the subsidy was maintained.

He confirmed that the floor price for maize would be maintained at KR65 (US$0.01).

The government has also introduced a barter system under which 659,000 of the 900,000 farmers are allowed to barter for fertiliser.


LATEST NEWS IN Agriculture

African food imports bill predicted to double by 2030

African food imports bill predicted to d…

Experts have warned that the cost of Africa’s yearly food imports could increase from US$50bn to US$110bn by 2030 if immediate measures aren’t taken to increase food production

Wildlife and forestry sector in the spotlight

Wildlife and forestry sector in the spot…

On August 22, the 23rd session of the African Forestry and Wildlife Commission, hosted by the Government of the Democratic Republic of the Congo opened in Kinshasa, putting the future...

Boosting investment for Africa-made cotton

Boosting investment for Africa-made cott…

At a partner’s conference on cotton, jointly organised with the World Trade Organization (WTO) and the UN Conference on Trade and Development (UNCTAD), donors were urged to mobilise resources for new partnerships.   

Nature-based solutions help farmers in Ghana

Nature-based solutions help farmers in G…

Organic pesticides, waste-based fertilisers and forest regeneration are just a few of the green initiatives being employed in Ghana to boost farming communities’ resilience to the impacts of climate...

Boosting soil nutrient mapping in sub-Saharan Africa

Boosting soil nutrient mapping in sub-Sa…

The Food and Agriculture Organization of the United Nations (FAO) is set to fast track an impact-oriented project in sub-Saharan Africa and Central America for digital soil nutrient mapping, after...

Gambia-Korea partnership seeks to double rice production to curb food insecurity

Gambia-Korea partnership seeks to double…

President Adama Barrow has received a delegation led by the Korean Ambassador to The Gambia, HE Kim Ji-Joon, at the State House in Banjul to announce the delivery of sample rice...

Prev Next

OTHER RELATED ARTICLES - Agriculture

World Bank raises concerns over Zambia’s subsidies removal

World Bank raises concerns over Zambia’s…

The World Bank has said it was "uncertain" over the medium-term fiscal impact on the removal of subsidies on fuel, maize and fertiliser in Zambia

The ABC Fund provides loan to three West African agri-businesses

The ABC Fund provides loan to three West…

The Agri-Business Capital (ABC Fund) has provided loans to three agri-businesses to support their working capital needs and their expansion, enabling higher rural employment and securing market access for farmers...

Ugandan smallholder farmers to benefit from seed fund

Ugandan smallholder farmers to benefit f…

A US$6.6m new agriculture project that is aimed at improving the quality of legume seeds produced is expected to benefit smallholder farmers in Uganda

Goat breeding a boon for Zimbabwe’s farmers

Goat breeding a boon for Zimbabwe’s farm…

Goat breeding is coming to the rescue of many farmers and ranchers in Zimbabwe who have lost a lot of their cattle to the unusually hot and dry weather

Task Force on COVID-19 impacts on Africa’s food security begins work

Task Force on COVID-19 impacts on Africa…

Ensuring people have access to food by keeping borders open for trade is critical during COVID-19, FAO director-general QU Dongyu said during the first meeting of the Task Force on...

Rwanda aims to protect unique plant varieties

Rwanda aims to protect unique plant vari…

A recent intellectual property workshop has prompted interest in protecting Rwanda’s unique plants

Severe cash crunch threatens WFP operations in Ethiopia

Severe cash crunch threatens WFP operati…

The Ethiopian authorities, together with WFP and other partners, are struggling to address the hunger crisis in the country as WFP urgently needs US$579mn to deliver food aid and livelihood...

Egyptian and Latvian foreign ministers discuss bilateral cooperation

Egyptian and Latvian foreign ministers d…

Edgars Rinkēvičs, minister of foreign affairs of Latvia, and Sameh Shoukry, foreign minister of Egypt, met on 16 February 2020 to discuss bilateral cooperation opportunities in a number of areas...

FAO declares 2016 International Year of Pulses

FAO declares 2016 International Year of …

The FAO has declared 2016 as the International Year of Pulses to raise awareness on the benefits of pulses and boost global production

UN launches hunt for start-ups, enterprises changing the face of food systems

UN launches hunt for start-ups, enterpri…

The UN Food Systems Summit has announced a competition to identify the best small and medium-sized enterprises (SMEs) from across the world who are transforming food systems for a better...

African Farming weekly digest - 27th - 31st March

African Farming weekly digest - 27th - 3…

Here is a brief overview of the week's new on africanfarming.net, from 27 - 31 March 2017

AccessBank Tanzania to offer agro loans in Kahama District

AccessBank Tanzania to offer agro loans …

A new AccessBank Tanzania branch set to open in Kahama District, Shinyanga Region will offer agro loans to local farmers, the bank has announced The branch opening follows AccessBank Tanzania’s strategy...

Prev Next