Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) is lobbying the government to give it at least 75 percent of this year’s Farm Inputs Subsidy Programme (Fisp) fertiliser contracts in the K111 billion deal.
SFFRFM argues that the arrangement would save taxpayers money because the State entity would buy fertiliser directly from manufacturers and supply it to the government at more affordable prices.
In an interview last week, SFFRFM spokesperson Grace Thipa said the proposal is in line with the institution’s mandate to ensure timely availability and accessibility of affordable fertiliser.
She said: “The main objective of establishing SFFRFM was to ensure timely availability and accessibility of affordable fertilisers.
“Supplying the government, therefore, fulfils this mandate and would enable the government to make huge savings on taxpayers’ money.”
Thipa said SFFRFM’s proposal specifically concerns Fisp and does not extend to other government food security programmes.
But she could not say whether the arrangement would be implemented this year, saying discussions between SFFRFM and government are ongoing.
Under the proposal, SFFRFM would take at least 75 percent of Fisp fertiliser procurement, with the remaining share going to private traders.
The proposal comes as government prepares to roll out the 2026/27 Fisp next month.
The Malawi Government has budgeted K111.45 billion for Fisp in the current financial year, less than half the K241 billion allocated to the programme in the previous season.
Ministry of Agriculture, Irrigation and Water Development says it plans to procure 61 093 metric tonnes (MT) of fertiliser for the programme but has not yet identified suppliers.
The ministry’s spokesperson Salome Gangire asked for more time to consult on SFFRFM’s proposal and whether government would allow the institution to supply fertiliser directly for Fisp.
Meanwhile, the Fertiliser Association of Malawi says the private sector has sufficient capacity to meet the country’s fertiliser requirements for the 2026/27 growing season.
Under this year’s revised Fisp, government is targeting 610 931 direct beneficiaries who will receive subsidised inorganic fertiliser and certified seed.
However, the total number of beneficiaries is expected to double to 1 221 862 smallholder farmers through the compulsory integration of Mbeya organic fertiliser production, with farmers’ organisations at the centre of programme implementation.
The farmers organisations will serve as the primary structures for beneficiary identification, coupon distribution and bulk input redemption under the Decentralised Agricultural Extension Services System.
Farmers will contribute K20 000 for a 50kg bag of fertiliser and K10 000 for a 5kg bag of seed.
