By Dr Simon Manda
The Centre for Trade Policy and Development (CTPD) has urged Government to consider the implications of the Food Reserve Bill 2020 because it does not address the historical inefficiencies of the Food Reserve Agency in its current form. CTPD notes that the Food Reserve Bill 2020 does little to address historical controversies associated with the Food Reserve Agency such as increased presence in the commodity markets.
As CTPD we think that if care is not taken, the Food Reserve Bill 2020 risks creating a Food Reserve Agency full of contradictions, inefficiencies and a platform for rent-seeking behaviour by well-connected large-scale producers and political actors.
The Food Reserve Bill 2020 in its current form extends the existence of the FRA by redefining and extending its functions. It also allows the FRA to integrate social functions of maintaining strategic grains on the one hand and commercial functions of grain marketing driven by profitability potential on the other. As CTPD we think, this is completely misleading and contradictory as it can only create a fittingly relevant platform for inefficiencies and scope for corruption.
According to the Food Reserve Bill 2020, the Agency is allowed to market, and trade designated agricultural commodity on the one hand and purchase, import, sell, trade or export a designated agricultural commodity on the other. This is aimed at correcting problems relating to the supply of a designated agricultural commodity arising from the manipulation of prices or monopolistic trading practices.
The Bill also allow the agency to identify, enter and operate markets in rural areas and determine prices for commodities. The bill also states that a trader or processor shall, prior to selling a designated agricultural commodity to the agency, declare to the Agency or otherwise commits an offence. Interestingly, the Agency shall receive donations of agricultural commodities and reserves the right to sell the same. As CTPD, we find these provisions in the bill not progressive and we also think that the role of the private sector actors in agriculture marketing is not clear.
Finally, CTPD thinks that extending the mandate of FRA beyond the social role of maintaining Strategic Grain Reserves can cause disruptions and unpredictability in commodity markets, which can have implications on growth of the sector and private sector participation.
We therefore urge Government to consider creating a clear coordination of different actors including traders and producers and how these will interact in the renewed mandate given to the FRA once the bill is enacted.
The Author is a Senior Researcher Trade and Development, at the Centre for Trade Policy and Development (CTPD), a not for profit, membership-based trade policy and development think tank established in 1999 and existed as the civil society trade network (CSTNZ), until 2009 when it was rebranded as the Centre for Trade Policy and Development (CTPD), with a mandate to influence pro-poor trade and investment reforms at national, regional and multilateral levels as well as facilitate the participation of various stakeholders including member organizations in ensuring that trade is used as a tool for poverty
eradication.
This is totally wrong , it needs to be disbanded , as it is a total liabiity
And you have an imbecile, a clueless, Edgar Lungu, who should not even be at the presidency. Deep policy issues, including, about Food in Zambia, are foreign to this failed lawyer and corrupt politician.
Patriotic Zambianns should work hard, relentlessly, to remove this guy and PF from irreparably destroying this country. Everyone needs to register to vote out Edgar Lungu and PF.
Everyone has something to say but not everyone says something worth considering. Some organisations wouldn’t exist if they didn’t criticise. They get funding for this,so I wouldn’t take any of it seriously.
Namboard is back