Government has announced that it has secured a K5 billion structured loan facility through commercial banks to expedite payments to farmers who supplied maize to the Food Reserve Agency (FRA) during the 2025 crop-marketing season.
Speaking when he presented a ministerial statement in Parliament Tuesday, Agriculture minister Reuben Mtolo Phiri says FRA, which began maize purchases on June 30, 2025, initially targeted 543,000 metric tonnes valued at K3.6 billion.
However, due to a bumper harvest and limited private sector participation, the agency bought over 1.6 million metric tonnes of maize worth K11.3 billion from 846,655 farmers, a 306 percent increase above the original target.
He says so far, government has disbursed K2.08 billion towards farmer payments, with the remaining balance being addressed through the new loan facility and maize sales to improve liquidity.
Mr. Phiri says government is committed to paying all farmers in reasonable time to help them prepare for the next farming season.
Meanwhile, the FRA has assured the nation that all 1.83 million metric tonnes of maize, including 167,356 metric tonnes of carryover stock have adequate storage, with additional space secured from the private sectorThe governmentent has since thanked farmers for their patience and contribution to national food security.
By Prudence Chota
