Former Luanshya Member of Parliament Steve Chungu has charged that the current flour price of maize will discourage farmers from engaging in maize production.

The Food Reserve Agency (FRA) last month pegged its maize purchasing price for the 2022 Grain Marketing season at K160 per 50kg bag of white maize which translates to K10 increment from last year’s price for the commodity.

Announcing the buying price for Maize, Soya beans and Paddy rice in Lusaka, FRA Board Chairperson Kelvin Hambwezya said that the agency has also fixed the price of soya beans at K550 per 50kg bag from K500 last year and K200 per 40kg bag of paddy rice from K195 last year.

But Mr. Chungu said the flour price is not matching the high cost of farmer inputs such as fertiliser.

He predicted that many farmers will not plant maize during the 2022/2023 farming season because the maize production business has become unprofitable.

“The current flour price of maize after consulting many famers I believe is actually working against our government policy on Agriculture. In the next planting season, many farmers won’t go into maize production with the price at which they are selling maize today. The increase of K10 which is just the cost of an empty grain bag and going by the cost of our fertiliser and various farming inputs is having a very bad toll on the farmers to go back into the field and plant maize,” Mr. Chungu said.

The former Government Chief Whip has since urged the government to re-look into maize pricing.

Mr. Chungu wondered why the price of maize has remained low when other commodities are becoming expensive.

“Practically the Government should look into this. It is not working out well and I am appealing to the leadership of this country, the President and Ministers to relook into the plight of farmers now. Maize is the staple food for the poor Zambian, the only food that we know. If the farmers are not going to go back to the field and plant, let’s forget about having a good harvest in the 2022/2023 farming season. It is not working out for anyone. I know the reason why they have tried to maintain the low cost of our maize is to maintain the cost of mealie meal but economically it is not matching with the flow price of our maize. The flow price is not matching with the cost of maize production. Farmers have already invested in maize production and need to get value for their investment. Farmers work hard to produce maize being sold at a mockery price,” Mr. Chungu said.

He added that the New Dawn Government’s economic policies are not inspiring citizens.

Mr. Chungu said citizens had high hopes that the UPND leadership would drive Zambia to great heights.

He said Zambia at the moment is not going anywhere economically.

“We had high hopes that you can drive this country to great heights but so far I do not see Zambia going anywhere economically. We are killing this economy by going to bed with the IMF. We are killing this economy by giving tax holidays to mining companies. Can we relook at the mining tax as we come up with the 2023 National Budget to ensure that we benefit from minerals? Why should we deny Zambians a birthright of getting right taxes from mineral resources? Why should foreigners get free minerals from Zambia?”

The Bank of Zambia-BOZ has said that the general public should not mistake the slowdown in inflation to mean a reduction in commodity prices clarifying that inflation depicts the rate at which prices increase and not decrease.

BOZ Director Economics, Jonathan Chipili clarified that the current rate of inflation simply means that commodity prices will continue to rise but at a slower rate of 9.7% as opposed to a higher rate of increase at 24% last year.

Several stakeholders, people, businesses and online blogs have been questioning how commodity prices remain high with some continuing to rise while the country has reported reduced inflation from over 24 % last year to a single-digit rate of 9.7 for the month of June.

Mr Chipili said that the single-digit inflation rate towards the bank of Zambia’s target of 6 to 8 %, does not mean prices will go down but that with slowed-down inflation, prices will be rising at a more desirable rate as opposed to when inflation is high.

Mr Chipili added that the current inflation rate is attributable to the stable exchange rate, the reduced price of maize due to the country enjoying a surplus in production and the gains made by the kwacha, as well as the high supply of vegetables on the market.

Zambia’s inflation rate dropped below 10% for the first time in almost three years in June, against a global trend of record consumer-price growth.

Prices rose 9.7% from a year earlier, compared with 10.2%% in May, interim Statistician-General Mulenga Musepa told reporters Thursday in Lusaka, the capital. The last time the southern African nation’s inflation rate was under 10% was in August 2019. Annual food-price growth slowed to 11.9% in June, compared with 12.3% in the previous month, and non-food inflation decelerated to 6.9% from 7.5%. Costs climbed 0.9% in the month.

According to Bloomberg, inflation surged toward the end of 2020 and peaked at 24.6% in the middle of last year. The acceleration was largely driven by a sell-off of the kwacha and its dollar-denominated debt after Zambia became Africa’s first pandemic-era sovereign defaulter in November 2020.

Optimism over the nation’s economy since the election of Hakainde Hichilema as president in August, a potential debt restructuring and a $1.4 billion bailout package from the International Monetary Fund has seen a rally in the kwacha. That’s helped contain prices that are increasing due to supply-chain disruptions stemming from the war in Ukraine and intermittent Covid-19 lockdowns.

The kwacha has gained almost 33% against the dollar in the last 12 months, making it the second best-performing currency after the Russian ruble.

The sustained slowdown in inflation may give the monetary policy committee room to hold rates and aid the economy’s rebound when it meets in August. Last month, the central bank projected inflation will average 12.5% this year and will decline toward its target range of 6% to 8% by the end of 2023.

President Hakainde Hichilema has assured traditional leaders that government will protect traditional sites as they preserve cultural heritage.

President Hichilema guided that various ministries under his administration will ensure that heritage sites such as the Gonde Malende in Monze district are protected from deforestation and encroachment so that they are kept in existence.

President Hichilema assured that the issue of ground rent should not be a bother as the government will provide relief to affected heritage sites in the country.

Speaking during the Lwiindi Gonde Traditional Ceremony of the Tonga people in Monze district of Southern Province, the Head of State was impressed with the attendance of various chiefs from across the country.

President Hichilema noted that it was a sign of unity of purpose and diversity among people of different cultures.

He noted that is what his government stands for, delivering development which is premised on peace and tranquility.

The Head of State used Zambians to draw inspiration from Chief Monze Mukulukulu who chose a cob of maize instead of a gun when the colonials presented him with a decision to make.

He said the choice by Chief Monze Mukulukulu was a sign of development as he looked out for the agricultural benefits among his subjects and also a sign of peace.

The President was happy that all Zambians can now boast of enjoying the peaceful atmosphere created by his administration regardless of their political affiliation.

The Head of State however stressed the need for collaboration between government and traditional leaders as they all have the interest of the people at heart.

President Hichilema noted that no one is in competition with the other but wants the development of the country to benefit all Zambians.

“The traditional ceremonies, can we slant them to carry with the cultural aspects and heritage but also to carry the country’s development agenda,” President Hichilema stated.

He cited the various development projects such as free education policy among other successfully implemented empowerment initiatives during the 10 months under the United Party for National Development (UPND) administration.

The President said citizens should get used to such progressive development as government is determined to work for the aspirations of the Zambian people.

And Chief Monze implored the government to formulate workable policies that will improve the agriculture sector especially for small scale farmers.

The traditional leader observed that even though the Farmer Input Support Programme (FISP) is of good intention, it has not yielded positive results.

Chief Monze noted that a lot of cases of misallocation under FISP have been reported not just under his chiefdom but across the country while nothing tangible has been made.

The traditional ruler further observed that FISP is supposed to be a pass-on initiative where farmers graduate to the level which is not happening.

“The FISP seems to have failed because those intended to benefit from the scheme are still facing challenges,” Chief Monze said.

He pledged beneficial partnership with government so that projects meant for vulnerable Zambians yield the intended results.

Meanwhile Minister of Tourism, Rodney Sikumba was happy that people of Monze had plans to upgrade heritage sites such Gonde to international standards to attract tourists across the country.

Mr. Sikumba said his ministry was looking for international opportunities to showcase the various ceremonies as well as make minimal infrastructure development.

Speaking at the same event, Monze Member of Parliament, Jack Mwiimbu who is also Minister of Home Affairs and Internal Security was happy with the unprecedented peaceful ceremony.

Mr. Mwiimbu announced that no violent case was reported so far.

Lwiindi Gonde Traditional Ceremony organizing Chairperson, Patrick Sikawala said the ceremony was being graced in two folds.

He acknowledged that President Hichilema was this time around not attending as a mere Patron of the ceremony but also the Head of State, adding that it was being held for the first time after Zambia was hit by the COVID 19 pandemic.