Government justifies selling of maize to Millers at a loss

1. Ebu welewele ubu.Purely NO ECONOMIC SENSE.MMD surely was way ahead of these chaps.We are back to subsidies now,next ma meali meal coupon-watch this space.

   • NO. MMD was even worse. They subsidized Zimbabwe. MMD sold maize to Zimbabwe @ $170 per ton which they bought at $260. Now who is worse. I know the PF is not doing the right thing but you saying that the MMD was better is a blatant lie. 

   • No “wise” man, MMD was NOT subsidizing other countries but subsidizing Zambian farmers by buying surplus maize at higher than export parity. It sold to Zimbabwe and other countries at world market prices – better to sell even at loss than to make no sale at all!

     Btw – PF has continued the pretty much same policy as MMD and in this case you are right – to say that one party is better than the other is basically pointless when both have got it wrong. 

2. Its called a subsidy! but for how long?

3. Controlled food production is akin to speculation on the stock market. If you distribute milling points so that families can keep some surplus to make their own meal you will be able to ensure food security for the most basic household. That, to me, is the way to go. Concentrating power of milling and distribution in a few corporates will continue to be a source of abusive speculation.

4. its a good move especially that they want to stabilize the mealie meal prices. however inputs are subsidized so it makes no economic sense to subsidize the output as well. its a foolish idea isnt it? what they would have done is to sell at the at 65,000 and let the law of demand and supply come into play. its a huge loss considering the transportation costs form satellite depots to FRA depots. now they have succumbed to pressure from producers who are millers. millers are now jubilating

5. there is something not right about our govt,things slowly jst not working, fuel, farmers payment, UTH water stuff,food shotage, no neutral police, u can mention em.I HAVE NOTHING TO LOSE, think PF is a CRISIS govt , im out and CHIPIMO is my next man to hope,will keep trying untill we see a better run zambia.

   • chipimo is the way forward i agree but he needs to be out more, speak more. he has some good ideas he needs to put them out there. the pf will die after sata, the latter is old school, less visionary, but he is the president we need to have now, the mmd just lost it, he has always worked hard for Zambians in all positions he held in the previous govments, i have nothing bad to say about him, we owe him this one, lets all stand together and support him

   • KB! Its not about people who lead our country. It is the system we have in place. Chipimo may talk beautifully but has no solution for Zambia. Bear in mind that the solution to economic troubles we have does not lay with government politicians. The government is the problem not the solution. Chipimo is just another BIG government guy who thinks a different bunch of politicians is the solution.
     The solution depends on the Zambian people to curb the powers of politicians and let the free market do its magic.

   • I will not be surprised if you BEMBA or from Northern province.The problem with you guys is that you are very tribalistic.’ba chililalila ‘ always accusing other tribes of tribalism.Really tell me the truth,has Chipimo really sold himself in Western ,North western,Southern ,Eastern and Southern Provinces?Has he got structures in place to really win the next elections?

6. then the millers should also pass on the discount to us K5,000

7. I think its tym 4 us 2 reduce depedence on maize as our staple food.Lets switch 2 cassava or rice coz as things stand the poor man is going 2 suffer untold misery.

8. SO the millers held the GRZ to ransom right? I think the shortage was artificial to force this deal!

9. They bought at K65 and add also transport, so the loss is more than K5,000. What of storage and logistics. UNIP is Back

   • MMD did even worse. PF is trying by subsidising their people. MMD was subsidising Zimbabwe and other surrounding countries by selling maize at $170 they bought at $ 260. They sold to Kenya at $135.

   • @ “Wise” Man – MMD was NOT subsidizing other countries, but merely selling at world market prices! In truth, they were subsidizing Zambian farmers by paying the growers more than international parity. 

     In fact, john daka makes a good point – the loss per ton is greater than K5,000 since there is storage, transport, salaries, and other costs to consider….. not least of which is +25% interest FRA is now paying to banks because it had to borrow to pay the farmers (a process it still has not completed!). 

     Simply put, if you you want to pay growers higher than world market prices (as MMD did and as PF continues to do!) the subsidy has to be for paid somewhere. PF should be up front about this. UNIP learned the hard way…. much to its ultimate demise!

10. Priority number one is to curb the shortage and regulate the price so that citizens do not get inconvenienced. Good move by the working govt.

    Those who are not with move can go kill themselves.

    BRAVO

11. Millers will buy at K60,000 and hold for next year when the price will treble due to current drought. Millers will continue to sell at current prices because its a liberalized sector. Bet the meal shortages situation will not change as most of the maize is going to Congo DRC.

12. It is ancient to be dealing with maize anyway 
    What of rice, Macaroni, bread?

    Blacks are very backwards in my country

    SO sad

    Thanks

    • According to maize is equivalent to backwardness and rice, macaroni bread advised is equal to advancement. I live in country with white folks, who actually like maize meal. I dont think you’ve had ample socialisation with whites.

    • Mushota you are such a dumb babe,who told you macoroni is a crop, expect better from you.Am so disappointed in you.

    • Iwe ka Mushota wakulila mubwali elo wambe ukutukanya ifwe.

      Elo ngawafwila uko tatwakasonke ishakuletela ka body kobe mu Zambia. Bakakuchita cremate ukokwine.

    • What is so special about rice or spaghetti Mushota? I have lived in Diaspora 
      for many years but still  cant do without our staple food ( nsima). If mealie meal is not available in my city I order from outside on Internet. Besides that, are you sure rice or that spaghetti would be more affordable for the ordinary people at home? Are they cheaper than ka saka aka bunga on long term? Get real. 
      Just for your information I have met bazungu ( white people) who once worked and lived in Zed for many years, when they discover i am from Zed, you know one of foods the say still miss? Nsima!!

    • The first part is worth considering.It is true,why not introduce Rice,Bread,Potatoes?
      Mushota,you have never convinced me that you are a black woman from Africa.Are you saying being black equals backwardness?You are very racist just like your referees .

13. Look at the UPND’s ZWD reporting:

    “Mealie Meal Crisis: panicking PF forces Food Reserve Agency to sale at a loss”

    So these UPND want

14. Government subsidies happens even in developed countries bane.It is one way of saving some industries which are important to the countries economy from collapse.

    • Of course subsidies happen in developed countries. The problem here is that the subsidies are haphazard and not carefully planned. In addition to the output subsidy paid to farmers and consumer subsidy paid to mills by FRA, there is also the FISP subsidy paid to farmers on fertilizer and seed.

      Government should get its act together and stop burning the candle from both (or all three?) ends. 

    • You have a point there.

15. ‘Choc Ice’ Mushota why do you enjoy belittling your fellow Zambians?

16. @Zebige .
    They subsidise production not consumption . Here in zambia the GOVT is failing to pay farmers for their maize while subsidizing consumption. Meanwhile maize meal is on demand in our neighbouring nations.

17. No wonder FRA has debt arrears in the trillions of Kwachas, they are either selling maize at subsidised prices or burning it because its gone bad. Ultimately, I feel for the Zambian taxpayer who has to pay the price for these ineffeciencies.

18. When is the PF government going to lift the embargo on the export of maize through FRA? They could have exported the maize to earn the money to pay the farmers.Because the farmers are dejected and inputs have not reached them, the harvest for the next season will decrease.

19. I estimate that the true cost of maize bought by FRA is about K80,000. K65,000 for the bag, transport and storage around K10,000. Security, paper work, transaction costs etc could be around K5,000. So the loss on a bag on a bag offloaded at K60,000 is around K20,000!! Subsidizing maize marketing is a total waste of tax payers money!! Government should let the maize markets regulates themselves instead of intervening through that dinosaur called FRA!!!

    • You are spot on CM Pa Zed.You can also factor in an amount for corruption (kickbacks), something must go into some pocket for every transaction in Zambia.

20. Please use KR and rebased values for your estimates and by they you are wrong pa Zed CN the cost is way more than you puny estimates you have not factored in the maize wasted and air supplied in place of maize.

21. @18 man eater. aptly put. i can say no more. these hidden costs, especially pa zed, are just too numerous. even pama road blocks you pay something. by the time your commodities reach the destination…… yaba..eh..

22. The UNIP government already experimented with subsidising consumption and the results were disastrous. Can we go down the same road as if we do not learn from history. Those of our friends who have influence with this government, please tell them to stop throwing our money into the biggest black hole in the entire universe.

23. The loss is very big! You should include transport and operational costs. CNP

24. The maize price has infact just been increased from $140 to $230.Meaning the loss component has actually been reduced by the PF..The govt will continue reducing subsidies until they fiinally do away with it.. this may take a while before realisation.

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