NFRA targets to stock 100 500MT
National Food Reserve Agency (NFRA) says it has planned to stock up its silos with about 100 500 metric tonnes (MT) of maize by the end of the year, to replenish the country’s strategic grain reserves (SGR).
The agency says based on its draw-down statistics over the past couple of years, the projected holding of 100 500 MT should be adequate to respond to humanitarian and emergency relief programmes through the Department of Disaster Management Affairs (Dodma) as well as the price stabilisation requirements through the Agricultural Development and Marketing Corporation.
NFRA started purchasing the grain at K550 per kilogramme on May 29 2023 following Treasury’s disbursement of K6 billion out of the K12 billion which Parliament approved for the purpose.
Briefing journalists in Lilongwe yesterday, NFRA board chairperson Dennis Kalekeni indicated that the agency has purchased 1 008.46 MT and expects to buy 11 000 MT from the initial K6 billion it has received.
According to Kalekeni, the remaining K6 billion will enable his organisation to procure a total of 22 000 MT of the grain.
The board chairperson also disclosed that the World Bank has released $10 million for the procurement of additional maize which is expected to cover another 21 000 MT.
Currently, NFRA has about 57 000 MT of the grain in stock.
Said Kalekeni: “The agency anticipates that the positive market response will continue because of the good price on offer. Deliveries are expected to further pick up as harvesting proceeds in earnest and maize drying advances.”
He further explained that the major bottleneck has been the incidence of high moisture content, especially for the maize purchased in the Central Region, adding that some suppliers have consequently had their maize returned because its moisture content exceeded the recommended maximum of 12.5 percent.
Kalekeni said while the moisture content is a lesser issue in the South, moisture readings have been as high as 17 percent in the Centre.
The board chairperson said the agency could not buy maize with high moisture content because it does not have functioning grain driers. But he disclosed that the entity is planning to install new ones by the end of the fiscal year to ensure that future procurements are not affected by moisture content.
Said Kalekeni: “We are currently discussing with other partners like the World Food Programme to assist in the procurement of the driers and once we have the machines, we will be able to purchase maize with higher moisture content.
Taking his turn, NFRA acting chief executive officer David Loga pointed out that to avoid congestion, the agency has restricted to a minimum of one MT per supplier. NFRA is buying the maize from its outlets of Kanengo silos complex in Lilongwe, Kazomba depot in Mzimba, Mzuzu, Limbe in Blantyre, Mangochi, Luchenza and Bangula depots in Nsanje.
