FRA to buy maize at K60 per 50kg bag

The Food Reserve Agency (FRA) has set K60.00 as the price at which it will buy a 50kg bag of maize during the 2017 marketing season.

The agency has also set K70 as the price for a 40 kilogramme bag of rice.

FRA Board Chairperson Joe Simachela says the agency will only buy three commodities for National Strategic Food Reserves namely, White Maize, Soya Beans and Paddy Rice due to logistical and budgetary limitations.

Mr. Simachela has told a briefing in Lusaka that the FRA will buy 500,000 tonnes of maize and 2,100 tonnes of paddy rice and 20, 000 tonnes of Soya Beans at a total cost of over 900 million kwacha.

He says the prices for this year’s marketing season is as a result of prevailing regional prices in view of the good harvests expected from Zambia’s traditional export markets such as Zimbabwe, Malawi and Mozambique which could impact negatively if significant price deviations are experienced with the Zambian prices.

Mr. Simachela has however, stated that the FRA market price will not in any way disadvantage the private sector who are expected to purchase a larger share of the 3.6 million metric tonnes of maize produced as compared to the FRA’s 500, 000 metric tonnes.

Mr. Simachela adds that the FRA’s proposed market price will also ease pressure on the treasury and marginally reduce the financing gap.

Meanwhile Mr. Simachela says the Food Reserve Agency will no longer sell grain to milers as they are expected to buy their own stocks.

And FRA Executive Director Chola Kafwabulula says the Agency has a carryover maize stock of 218, 000 tonnes of which 100, 000 tons will be exported.