Tuesday, May 7, 2024

MMD advises PF government not to bow to IMF pressure to remove agric subsidies

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MMD Chairperson for elections Gabriel Namulambe
MMD Chairperson for elections Gabriel Namulambe

The opposition Movement for Multiparty Democracy (MMD) has advised government against bowing to pressure which the International Monetary Fund (IMF) is allegedly exerting on it to abolish agricultural subsidies.

MMD chairperson of elections Gabriel Namulambe explained that agricultural subsidies were important for the country to continue enjoying food security at both household and national level.

Mr. Namulambe said the three previous consecutive maize bumper harvests were as a result of government’s Farmer Input Support Programme (FISP) through which government has been providing subsidized agricultural inputs to small scale farmers.

He told the Zambia News and Information Services (ZANIS) in Lusaka today that if abolished, government should then forget about eradicating poverty among the vulnerable but viable people.

He however commended Minister of Agriculture and Livestock Emmanuel Chenda for assuring the nation that government has no intentions of abolishing the facility that benefits the majority of the rural people.

Mr. Namulambe said the IMF should stop championing policies that threaten food security among the poor people but should instead promote easy market for subsidized western agricultural produce in Zambia.

Some media reports are suggesting that the IMF is urging the Zambian government to consider abolishing subsidised agricultural inputs owing to the high costs it is incurring.

And the former ruling party is still awaiting recommendations from the party’s ad hoc committee that was tasked to study exculpation letters of its Members of Parliament (MPs) serving as deputy ministers in the Patriotic Front (PF) government.

Mr. Namulambe said the party’s National Executive Committee (NEC) has not yet received a report on the fate of the 10 defiant Members of Parliament.

He explained that the ad hoc committee will guide the NEC on what course of action should be taken against the 10 erring MPs who have deified the party’s directive to quit government.

He has also disclosed that the ongoing applications for party members to fill vacancies in the party is progressing well and therefore, a decision will be made soon based on the eligibility of applicants.

ZANIS

33 COMMENTS

  1. Now this proper opposition. Debating policies! I am not a fun of agric subsidies rather the money is spend on infrastructure projects in rural areas and peasants/villagers employed to provide labour for these infra projects. The wastage/losses/corruption in agric subsidies is massive and will have been playing this like a broken record since independence. Besides I have not heard of a third world/ emerging country that has registered economic growth on the back of such agric subsidies. China for example has turned peasant farmers into migrant factory workers.Food for thought.

    • You are in South Africa and not in rural Zambia to appreciate the value of Agriculture subsidies. Levy was the one who brought back subsidies and brought sanity in the industry away from Chiluba’s brown envelopes. Levy stood up against GM foods and proved himself. Remove the subsidies and encourage poor farmers to fend for themselves? The subsidy is the only thing that poor people can have a claim to on the so-called national cake.

    • Let’s be honest! The ruthlessness of the IMF&WB & their bias towards the PARIS CLUB is frightening! Pure hypocrisy! How else can u explain their protection of govt subsidies to farmers in Europe &the USA, yet advance abolishment in our countries! The realities of the 1980-1990s IMF-WB structure adjustment program are as vivid as yesterday.They plan too ahead not for our leaders to see. During SAP, apart from “mineral wealth” they advanced the killing of industries to create “consumer wealth” for the developed’s goods- look at the reality today. Now they want to paralyze Agriculture,so that the shortages of products will be blamed on govt,and justify entrance of foreign farmers, and such products-Land will be gone! Then another liberation struggle. Unless Rhodesians dont learn!

  2. Gabriel you have got a point. We are not hungry in Zambia today because our people are helped to grow enough food.

  3. A total eliminationof subsidies would likely be disruptive. However there should be a move to reduce the current fiscal burden that this subsidy presents. Perhaps the government needs to employ some sort of means test that ensures that only (or at least mostly) those that deserve the subsidy can access it. Of course this is no mean feat and the costs of such a test would have to be weighed with the cost of not having it at all. The other fascinating thing about the maize sector is that those who get subsidised inputs are forced to get them again in the ensuing season since they can only sell the product at a set price which I understand is lower than the full cost (plus a margin). Hence the farmers are subsidised and then they subsidise the millers and us the consumers….!!!

  4. Subsidy is good as explained by others as it ensures food security especially the component contributed by small holder farmers.But how much does it consume of the Ministry of Agriculture budget?Let it continue but shud sit on Ministry of Finance

  5. Govt should never remove agric subsidies because they ultimately help in keeping the cost of food low. IMF must first exert pressure on western govts to remove agric subsidies they give to their farmers before turning to our country.
    Govt must remember that IMF/World Bank policies have always been aimed at perpetuating poverty and underdevelopment in economically challenged countries.

  6. Article 60(Zambian Draft Constitution): Minority and Marginalized Groups. I personally see this article as a fulfilment of Chanda Chimba III’s predictions. The rationale for the article is that it is catering for groups apart from those identified. Those identified are women,children,youth,young people,older members of society and persons with disabilities. Who then is this article catering for if not homos/gays? I didn’t include in my comments but if anybody cares out there,with 1 day 2 go,somebody can propose for the removal of this article(By David Kaluba)

  7. What Nalumambe is suggesting is very harmful, allowing subsidised European or American products into the country will kill agriculture.  The products will be cheaper compared to Zambian produce and Zambian farmers will have no market to sell their expensive products. The result will be farmers abandoning farming because it will be not profitable. Many countries which have signed free trade with these highly subsidised countries have regretted the move, they are worse off

  8. Let’s be real! The ruthlessness of the IMF&WB & their bias towards their pay master is frightening! Pure hypocrisy! How else can u explain their protection of govt subsidies to farmers in Europe &the USA, yet advance abolishment in our countries! The realities of the 1980-1990s IMF-WB structure adjustment program are as vivid as yesterday.They plan too ahead not for our leaders to see. During SAP, apart from “mineral wealth” they advanced the killing of industries to create “consumer wealth” for the developed’s goods- look at the reality today. Now they want to paralyze Agriculture,so that the shortages of products will be blamed on govt,and justify entrance of foreign farmers, and such products-Land will be gone! Then another liberation struggle. “Survival of the fittest”

  9. I 100% support continued GRZ agric subsidies.It should be non-debatable.Actually,analyzing the global records indicate that we are under-subsidizing.IMF should be ashamed of themselves.Up to now they don’t mean well to us.Africa is for Africans and Zambia is for Zambians.Let us decide how we spend our money.You can cheat some people sometime but you can not cheat all people all times.I urge GRZ to really strengthen ties with China while it is also developing.To hell with IMF/WB

    • I agree with you 100%. Countries that have done away with these hypocrites are doing fine now. To hell with IMF-WB. China you are welcome, let’s develop together!!!!!!!!!!!!!!!!!!!!

  10. I posted that the IMF/wb are the biggest liars! They asked us to sell zccm and now they are asking us to subsidize. What happened to the mines now?? And where is the money going? How much money stays in Zambia? Losers 

    • No, they never did this to kaunda. Kaunda used to subsidize consumers. He punished farmers. Farmers never had subsidized inputs like seed and fertilizers. Hence farmers never used to grow a lot of maize. And we had to rely on imports.

      The mmd starting with Levy changed this by giving farmers subsidized inputs.

  11. Go to USA, Australia etc and you will see how their governments have put in place measures to financially prop up their farmers. In those places inclduing SA, it is feasible to rely on farming as an economic activity. Here in Zambia, it’s not possible for you to live solely on farming because the government support systems are non existent. The subsidy is the only rare semblance of anything agric support in Zambia. Therefore, what is the IMF ‘s alternative to such a broekn economy for rural livelihoods. The IMF wants to literally ‘kill” our rural folk completely. Ridiculous indeed.

  12. PLEASE GOVERNMENT, DON’T GIVE IN TO THE IMF!  In this day and age we really don’t need their directives. They together with the World Bank plundered our economy with their structural adjustments programs of the 1970s, 80s and 90s.

    We don’t need them, we have already turned to the EAST( China) where loans are given based on a WIN-WIN situation…

    Send the IMF back to Washington…

  13. Gabby, This is good constructive opposition, this is what we want to hear.Poverty levels will increase if subsidies are removed,Can the IMF/WB tell us the solution besides subsidies,China is doing it and they dare not talk about it.We all in Zambia as economist know that the subsidies cannot be sustained, but where are looking at improving other sectors, before we can find alternatives.

  14. There is a need to put the issue of subsidies under a microscope. It requires a total review because most Zambians equate subsidies to maize production. What good is the so called bumper harvest if billions worth of it goes to waste? The government even goes to the extent of determining the price of agro products, what happened to the concept of market forces being the determinants of price? Subsidies can be made to work better than what is currently obtaining

  15. ONE ZAMBIA ONE NATION.
    IN GOVERNMENT OR IN OPPOSITION.
    KEEP IT UP, NO ONE WHILE EVER DEVELOPMENT OUR COUNTRY BUT US NOT EVEN THE SO-CALLED INVESTORS.

  16. It is a contetious issue and it needs to be looked into,wish someone could give us the actual figures involved but what i know is the agro (maize) subsidy does beat the health budget. it is no brainer, the subsidy is not sustainable period! needless to mention, the agro subsidy has been mared with gross losses e.g poor harvest storage, low retail prices locally and export, wrong beneficiary at the expense of the intended beneficiaries and corruption. above all the subsidy (especially farming imputs) has been used for political expedience! PF please flush the system let the fat cats tighten their belts!

  17. We are committed to guide the Nation on National matters.We do not need the Imperialists to rule us ever again.

  18. Thanks Gabby. I really looked for a platform to air my opposition to these advances by the IMF. Under the Chiluba government when we subscribed to their prescriptions we were starving and meal ,meal became so dear. I am personally happy to have my taxes being used to subsidise the production maize which is my staple food. Let IMF go and help Greece, Spain and Portugal. We dont like their policies!!

  19. But I am uncomfortable with the finance minister’s stance. So far he has been agreeing with them!

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