Govt claims K11.3 billion paid to 846,000 farmers as debt owed by Food Reserve Agency for maize supplies

Government has reportedly paid out over K11 billion to a total of 846,655 farmers who supplied maize to the Food Reserve Agency (FRA) across the country.

Agriculture Minister, Reuben Mtolo, told Parliament in a ministerial statement that as of January 15, 2026, a total of K11,348,474,100 had been disbursed to banks for farmer payments, leaving no outstanding balance.

Mtolo said the FRA purchased a total of 1,667,921.15 metric tonnes of maize during the 2025/2026 crop marketing season—significantly surpassing its planned 534,000 metric tonnes—at a total cost of K3,692,400,000.

Regarding the management of surplus stocks and sustaining FRA obligations, the minister said the country recorded an exportable surplus of 501,621 metric tonnes of maize in the 2024/2025 farming season.

“Therefore, as at December 31, 2025, total maize grain exports totalled 202,876 metric tonnes, broken down as 148,494 mealie meal equivalent to 126,918 metric tonnes being held by the private sector, 15,734 maize grain and 38,648 by FRA,” he said.

Mtolo explained that this left a balance of 298,745 metric tonnes available for export.

“Government remains resolute in securing export markets to offload the maize surplus currently held by the FRA to support timely financial obligations and preparedness for the upcoming marketing season,” he assured.

He further announced that government, through the FRA, had signed a government-to-government contract with Malawi to export 200,000 metric tonnes of maize grain, and as of February 2, 2026, 37,143.17 metric tonnes had already been supplied.

In addition, he said bilateral discussions with the Democratic Republic of Congo (DRC) were ongoing, following that country’s expression of interest to purchase over 500,000 metric tonnes of mealie meal from Zambia.

“In the 2026 crop marketing season, government will place emphasis on digital payments to the farmers’ bank or mobile money accounts as we minimize over-the-counter transactions,” he said.

Mtolo added that government was also working to operationalise the warehouse receipt system, a mechanism that will allow farmers, agro-dealers and other individuals to transact using warehouse receipts as collateral.

He said government was aware of the increasing participation of agro-dealers in rural areas and was encouraging them to begin mobilising for the next farming season.

“The Ministry will continue to strengthen market arrangements and export facilitation to support FRA’s cashflow, settle outstanding attendant costs and ensure preparedness for the next marketing season,” Mtolo said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.