Should FRA sell old maize stocks to create room for new stock?

The National Association of Smallholder Farmers (NASFA) […]

The National Association of Smallholder Farmers (NASFA) has called on the Food Reserve Agency (FRA) to sell off a significant portion of its existing maize stock in order to free up storage space for the imminent new harvest.

Currently, the FRA has around 1.4 million metric tonnes of maize in storage from previous seasons, raising concerns about its ability to efficiently receive and store additional maize from farmers during the current harvest.

 In an interview with the Zambian Business Times (ZBT), NASFA Executive Director Dr. Frank Kayula emphasized the need for FRA to actively seek markets for its existing maize reserves while continuing to purchase maize from local farmers.

 He stressed that this dual approach would prevent interruptions in farmer sales and protect smallholder producers from exploitation by private buyers offering uncompetitive prices.

 “FRA should be simultaneously buying and searching for markets to sell its current stocks, as the agency is currently holding too much maize in reserve,” Dr. Kayula stated.

He further explained that selling the old stock would enable the FRA to continue supporting farmers without forcing them to accept lower prices from private buyers.

“As FRA sells off its reserves, it can keep buying from farmers, ensuring they are not left at the mercy of those offering very low prices,” he added.

 Dr. Kayula also urged farmers who have not received payment within the stipulated 72-hour period to follow up with their respective depots to establish the source of delays. He clarified that while depots are responsible for collecting sales data, the payment process is managed at FRA headquarters.

“Farmers should determine where payment delays are occurring, as depots only collect the data before forwarding it to FRA headquarters for processing,” Dr. Kayula advised.

 The call from NASFA highlights the importance of efficient stock management and timely payments in supporting Zambia’s smallholder farmers during the critical harvest period.

Article by Philip Sinkala