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THE Zambian government says millers’ contracts with the Food Reserve Agency (FRA) will only go up to May this year to enable them to purchase maize directly from farmers.
Agriculture Minister Given Lubinda said the FRA would not renew contracts of any of the millers as they were expected to start purchasing maize directly from the farmers.
Speaking during the commissioning of the US$2 million Jambo Milling plant in Ndola on Thursday, Lubinda said his government did not intend to regulate the milling industry, just like any other business, hence the need for the millers not to depend on the FRA.
“Government wants you to operate without interference. government must not continue to deliver maize to milling companies and as millers you shouldn’t expect that you’ll get raw material from government.
“The moment you start relying on FRA for inputs, you’re asking us to regulate you. If you ask FRA to buy maize and sell to you, be ready for government to tell you the price at which to sell mealie-meal and that’s not how we want to run this economy,” he said.
Lubinda said government had provided inputs for farmers to produce maize and that it was the duty of the millers to buy the grain from the farmers.
“My advice to you as Jambo Milling is that because of the fact that Zambian maize is highly sought after in the region, farmers aren’t going to be given a raw deal.
“They know their maize can fetch high prices and as a milling company you’ll do well to employ agriculturalists who will support farmers, give inputs to farmers and go into contract farming with them so that they know that maize being produced is committed,” he said.
Lubinda said the price of mealie-meal would not be adjusted upwards, but that the government would work hard to ensure that the price of the commodity was reduced.
“Government is working extremely hard to ensure the prices of mealie-meal go down. We’re encouraging millers to be aware that the industry is highly sensitive.
“As you pursue your investment be aware and cautious that any unnecessary movement in the prices shall attract political ramification,” he said.
Jambo Milling managing director Axmed Shile said the firm had invested almost $2 million in setting up the milling plant and employed over 100 people in response to the government’s emphasis on job creation. — lusakatimes
derick.khumalo