If Minister of Agriculture Sam Kawale’s sentiments are anything to go by, inadequate fertiliser stocks threaten the smooth roll-out of the 2024-25 farming season’s K161 billion Affordable Inputs Programme (AIP).
During a media briefing in Lilongwe yesterday to update the nation on the status of AIP, which provides smallholder farming families inputs, notably fertiliser, improved seed and in some cases livestock, the minister said so far about 41 354.3 metric tonnes (MT) of the required 104 845MT fertiliser has been secured, representing about 40 percent of the requirement.
With a week to the launch of the programme, Kawale said 39 354.3MT of the secured fertiliser is still under collateral and in Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) warehouses.
“The fertiliser that is readily available is a carryover stock of 2000MT. The fertiliser under collateral will only be released for distribution once government makes payments,” said the minister.
Kawale’s revelation does not inspire confidence for an initiative that has, for the past four years, been rocked by logistical glitches, including delayed redeeming of coupons and unavailability of stock in some areas.
At the same stage last year, the government had secured 73 percent of fertiliser for the AIP.
Records show that as of October 5 2023, there was 73 358MT of fertiliser for AIP available against the required 149 164MT. That time, the stock that was ready to be drawn from carryover stocks was 16 385MT.
Kawale said once government pays, the 39 354.3MT of fertiliser will be dispatched to selling points.
He said the remaining 64 130.14MT is expected to be supplied by SFFRFM and 19 other companies engaged to supply the product through a competitive bidding process.
Said Kawale: “SFFRFM will supply 20 000MT while the 19 companies will cover 44 130.14MT.
“The rest of the fertiliser needed is in the warehouses of the companies selected to supply it, either in Malawi or in Beira [in Mozambique].”
According to the minister, this year government is not buying directly from manufacturers because of demands for advance payments and foreign exchange, adding that the companies that have been engaged will be paid in kwacha.
Said Kawale: “The government’s goal has always been to procure fertiliser directly from manufacturers. However, over the past couple of years, the country has faced forex challenges that have made it difficult for the ministry to do so. Most, if not all, manufacturers require that payment be made in advance and in US dollars.”
This year, AIP is expected to benefit 1.07 million smallholder households.
During its inaugural year, the Tonse Alliance administration, fresh from its triumph in the court-sanctioned fresh presidential election in June 2020, put the number of beneficiaries at 3.7 million, but has gradually been reducing over the years. The number is now almost the same as what the Democratic Progressive Party administration used to target under Farm Inputs Subsidy Programme.
Meanwhile, Grain Traders Association of Malawi president Grace Mijiga Mhango has expressed worry that government has not made much progress on securing fertiliser for AIP when the rains have started in some areas.
She feared that there will be a repeat of last year’s AIP delays.
“It is worrisome that we haven’t even secured half of the required quantities. It is very difficult to deliver all that which is remaining from now to December,” said Mijiga Mhango.
In his reaction, Parliamentary Committee on Agriculture chairperson Sameer Suleman said by now the ministry should have secured the volumes needed to implement the programme.
He said: “Rains have already started in some parts of the country, and government should have been on top of things, especially that money was made available in April.
“It is very clear that this year’s AIP will face delays in implementation due to unavailability of fertiliser. This will create a food crisis.”
Suleman also wondered why government decided to reduce the number of beneficiaries at a time the country is facing hunger. He said more farmers should have been supported to increase food production.
In the 2021/22 financial year, government listed 3.7 million farmers, before reducing the number to 2.5 million in the 2022/23 growing season only to trim it further to 1.5 million in 2023/24 season.
This year, government allocated K161 billion towards AIP, targeting 1 054 945 farming households, of which 1 048 445 will access fertilisers and seed; while 6 500 farming households from Balaka and Mwanza districts will receive female goats.
Farmers will be paying K15 000 per bag and each farmer will access a bag each of NPK and Urea fertiliser.
Giving a breakdown of the stocks yesterday, Kawale said as of September, the country had 143 448MT of fertiliser, covering both AIP and commercial. Of the tonnage available, 72 951MT was Urea while 72 481MT was NPK.
