FRA fails to buy targeted 500,000 MT of maize

Wed, 02 Nov 2016 09:15:24 +0000

THE Food Reserve Agency (FRA) has failed to meet its scheduled target of buying 500,000 metric tonnes of maize during the 2016 crop marketing season due to private buyers who have pegged the price of the grain at K110 against K85 which is the government’s floor price.

In a notice issued yesterday, FRA procurement coordinator Kelvin Mukosayi said the agency was mandated by law to purchase maize and other designated commodities for strategic food reserves but had failed to meet its target owing to what he termed market dynamics.

In order to meet the shortfall of 220,000 metric tons, FRA has now invited local suppliers such as grain traders, commercial farmers and private suppliers with maize stocks to sell the grain to agency.

He explained that the required 220,000 metric tons of maize should  be non-genetically modified (non-GMO) Grade A white maize and of a moisture content of 12.5 and shriveled grain 0.1 among other requirements.

“The FRA is mandated by law to purchase maize and other designated commodities for strategic food reserves. However, the agency has not met the maize purchase target. In order to meet the shortfall, local suppliers such as grain traders, commercial farmers and any firms or persons that have stocks are hereby invited to make offers for the sale of 220,000 metric tonnes of maize to the agency,” Mr Mukosayi said.

It appears that despite the backing of the law the agency was fighting a losing battle against private buyers for the control of the nation’s supply of the produce.

The agency had issued a Gazette notice for the purchase of a minimum of 500,000 metric tonnes of maize during the 2016 marketing season from June 1st to October 31st, 2016, subject to market dynamics.

He said that the minimum quantity of maize which an individual supplier was expected to sell to FRA was 100,000 by 50 kg bags or 5,000 metric tonnes and payments would be made on a first come first serve basis.

Mr Mukosayi said that the suppliers would be requested to deliver the maize to the nearest designated agency depots and follow modalities.

He assured small scale farmers that the substantive 2016 crop marketing season would continue in the usual manner and that they should continue delivering maize to the FRA satellite depots countrywide.

Meanwhile, in a latest update, FRA public relations officer Daniel M’soka said that the food agency had bought 280,045 metric tonnes by 50Kg of white Grade “A” maize.

In an interview yesterday, Mr M’soka said that a balance of about 219, 955 of metric tonnes of maize remained to be secured but stated that he would not comment further on the matter as a tender procedure had already been circulated in the media and that it would suffice.