Government bails out FRA with K5 billion to pay 846,000 farmers

THE long wait for payment is finally coming to an end for over 846,000 small-scale farmers, after government released K5 billion to help the Food Reserve Agency (FRA) clear its arrears from this year’s crop marketing season.

The intervention follows months of frustration among maize suppliers, many of whom have been waiting since July for their dues after FRA bought more grain than initially planned.

The agency had targeted to purchase 500,000 metric tonnes, but ended up collecting a massive 1.6 million metric tonnes of white maize, the highest volume in years.

Agriculture minister Reuben Mtolo confirmed that the treasury has so far distributed K2.08 billion, while an additional K5 billion will be sourced through a structured loan with commercial banks to fast-truck remaining payments.

Phiri said the government was determined to honor its commitment to every farmer who delivered grain to FRA depots.

He was speaking when he delivered a ministerial statement to parliament yesterday.

“We fully recognise the challenges our farmers have faced, and the government is moving quickly to ensure all outstanding payments are settled,” Phiri said.

He explained that part of the delay stemmed from the unexpected bumper harvest and limited participation by private buyers, which left FRA as the main purchaser of maize.

Despite the financial strain, the Minister said the agency had already begun paying farmers and that the new funds would help clear the balance in the coming weeks.

“FRA’s maize purchases this season amounted to K11.3 billion, representing a huge jump in both quantity and supplier numbers. The majority of the grain came from smallholder farmers who rely on timely payments to prepare for the next planting season,” he said.

Phiri further assured parliament that storage challenges had been addressed, with FRA securing an estimated 1.1 million metric tonnes of in-house storage and 730,000 metric tonnes through partnerships with private sector facilities.

He then praised the patience and hard work of small-scale producers, calling them the heartbeat of Zambia’s food security system.

By Sharon Zulu

Kalemba November 5, 2025