
The Food Reserve Agency (FRA) has maintained the maize floor price of K65, 000 for a 50 kilogram (Kg) bag of maize and K60, 000 for a 40 kg bag of paddy rice.
And the FRA says it has targeted to purchase 1.3 million metric tonnes of maize at a cost of K1.69 trillion in this year’s agriculture marketing season.
The Agency has also set June 1 to October 31st as the period for 2011 agriculture crop marketing adding that the FRA will only buy maize with moisture content of about 12 percent.
FRA board Chairman, Brigadier General Maybin Sikweti announced this at a media briefing in Lusaka today.
He said that the agency arrived at the prices after carefully analyzing the cost of production and the prevailing local and regional markets.
“These prices were arrived at after carefully analyzing the cost of production and also after taking into account the prevailing local and regional market conditions.
” Initially we were supposed to reduce the prices of the commodities because we have a surplus but instead decided to maintain the floor prices considering the production cost our farmers have put in,” He said.
Meanwhile, the FRA is targeting to purchase 1.3 million metric tonnes of maize at a cost of K1.69 trillion in this year’s agriculture marketing season.
Brigadier General Sikweti said FRA will also purchase 5000 metric tonnes of paddy rice valued at K7.5 billion.
The Board Chairperson said the money to finance the exercise will be through government grants, crop sales and commercial borrowing.
He announced that the FRA has repaid the loan sourced from Finance Bank which it acquired last year for crop purchasing adding that it is in the process of repaying the US$140 million loan acquired from Standard Chartered by July this year.
Meanwhile the FRA has set June 1 to October 31st as the period for 2011 agriculture crop marketing adding that the FRA will only buy maize with moisture content of about 12 percent.
The Board Chairperson said the agency has since set up satellite deports in all the 74 districts where farmers will be selling their produce.
“The agency has set up buying points in all the 74 districts on average 15 satellite depots per district will be opened to ensure that the farmers have access to the market,” he said.
He has however said urged farmers to use the floor prices as guidelines when negotiating with other private buyers on the market.
Brigadier General Sikweti said FRA has embarked on a construction of 98 slabs in strategic positions with a total capacity of 450,000 metric tonnes to avert the challenges of limited storage space.
He also said that FRA has exported about 290,000 metric tonnes of maize valued at US$ 48.2 million to Zimbabwe, Namibia, Mozambique and Congo DR.
“The FRA has also sold about 168,000 metric tonnes of maize valued at US$ 27.9 million to local millers in addition about 2,600 metric tonnes have been sold to local communities while 18,600 metric tonnes have been released to the Disaster management and mitigation Unit (DMMU) for relief distribution purposes” he said.
Zambia has this year recorded another bumper harvest of over 3 million metric tonnes of maize.
ZANIS