The Private Sector Development Association (PSDA) has welcomed the Food Reserve Agency’s (FRA) decision to limit its maize purchase to only 500,000 metric tonnes for national strategic food reserve.
PSDA Chairperson Yusuf Dodia said the move will greatly help in promoting private participation in the grain marketing and purchasing sector.
Speaking in an interview with ZANIS in Lusaka today, Mr. Dodia explained that the decision by FRA is a good step in the right direction.
He said the private sector usually faced challenges to access the markets as they would not compete with FRA which is highly subsided by government.
Mr. Dodia said there was now need for government to come up with the policy that will support private sector participation in the grain marketing process.
He noted that government should also allow grain marketers to buy and store excess produce for export markets.
He further said government should work with other key stakeholders in the maize marketing system to develop a strategy that will encourage farmers to grow enough maize not only for local but also for regional consumption.
The PSDA Chairperson further stressed that the private sector involvement is significant in the effective implementation of the marketing season.
Mr. Dodia has also urged farmers to understand the market forces and the law of supply and demand so that they do not feel exploited.
Two days ago, the FRA announced that it will only purchase 500,000 metric tonnes of grain and expected the private sector to also come on board.
FRA board Chairman Joe Simachela stated that the private sector should fill the gap on both the areas that will be left out as well as buy the excess stocks that will not be accommodated in the FRA budget provision.
But this is nothing new. Last year FRA bought 500,000 metric tons as well. And the farmers were exploited terribly. What you Mr Dodia should address is why the millers are so expensive with their pricing despite them buying that commodity atvsuch a low price last year. The fact is so many milling companies have stocked up from last years harvest and yet they continue to be exploitative and try to influence the govt to set a low price. What supply and demand nonsense are you on about? There is no maize on the ground and demand is very high all over Southern Africa. Thebtruw price of maize if you flow the market is K2 and FRA should have set their at least at K1.5 but alas the farmers have been let down again.