Govt opts out of Fisp

Government will not take a leading role in fertiliser distribution in the 2016/17 Farm Input Subsidy Programme (Fisp), it has been learnt.

The development, which is part of donor reforms, means Fisp has been left in the hands of the private sector, with the seed component already in the hands of Seed Trade Association of Malawi (Stam)

Speaking in an interview last week, deputy national Fisp coordinator, Osborne Tsoka, confirmed the development, saying government will only be responsible for drafting contracts with private sector firms responsible for supplying the commodity.

“Actually, the process of identifying the suppliers is at an advanced stage and about five or six will be responsible for ensuring that fertiliser has been distributed to farmers.

“Previously, government would give contracts to suppliers as well as transporters of fertiliser who would not only supply to warehouses, but also to take the fertiliser to farmers,” he said.

According to Tsoka, the private sector will be retailing fertiliser and will be paid once vouchers have been reconciled.

Through this arrangement, government is expected to save about K2 billion from transportation, retailing and warehousing costs.

Tsoka further said Agricultural Development and Marketing Corporation (Admarc) and Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) will also be taking fertiliser to the farmers.

According to a Fisp weekly logistics report, government will soon update the list of beneficiaries for this year for selection.

Reads the report:  “Concerning updating the farm family database, returns reflecting 2016/17 farm family numbers have now been agreed with 16 districts.  However, the ministry, in  a meeting held with the dados [district agriculture development officers] on August 11, provided the latter with a list of last year’s farm families minus last year’s beneficiaries and instructed the dados to update this list to reflect the 206/17 position.”

Government first rolled out a pilot project reflecting the changes last year when the private sector was commissioned to distribute 40 000 metric tonnes. However, they distributed 33 000 metric tonnes only due to topographical challenges in some areas.

Early this year, government announced that it will trim beneficiaries from 1.5 million to 900  000. n