The Economic Empowerment for Action Group (EEAG) has urged Malawi Government to consider adopting contract farming as an exit strategy to the eight-year-old Farm Input Subsidy Programme [Fisp].
The comments by EEAG come after government has contracted companies to start the distribution of fertiliser ahead of the 2012/13 crop growing season.
EEAG chairperson Louis Chiwalo, in an interview last week, said their survey has found that government continues to make losses under Fisp due to poor rains coupled with the abuse of the programme.
Government has in the 2012/13 budget allocated K40 billion towards Fisp, which is double the amount Parliament allocated to the Ministry of Transport and Public works infrastructure, HIV and Aids Management, and that for secondary and primary schools.
â€œIf we trace the track record of fertiliser subsidy, actual beneficiaries do not benefit or if they do then they sell the coupons to commercial farmers. If the programme has helped to deal with food insecurity, we would not be hearing of hunger reports,â€ said Chiwalo.