FRA Under Fire for Maize Price That Undercuts Farmers and Ignores Input Costs

The Food Reserve Agency (FRA) has announced its crop buying price for the current marketing season, but the move has sparked widespread concern among agricultural stakeholders. 

Economic analyst Kelvin Chisanga has criticized the price as a “psychological figure,” arguing it fails to reflect the actual costs of production and could destabilize the already strained farming sector.

Chisanga noted that despite FRA’s statutory role to set floor prices for key commodities like maize and rice, the agency has neglected to incorporate real production costs in its pricing formula. 

“This disconnect threatens investor confidence and leaves maize producers operating on tight margins, making the sector less viable,” he warned.

The controversy has reignited scrutiny over the effectiveness of the Farmer Input Support Program (FISP), which aims to bolster smallholder productivity. Chisanga called for a detailed evaluation of the relationship between inputs provided under FISP and the actual market value of the resulting crop yields.

“Initial indicators suggest that output prices—particularly for maize and rice—are falling below break-even levels,” he stated. “This is concerning, especially when the government has allocated over K1 billion towards FISP this year.”

Mr. Chisanga further revealed that FISP-supported farming currently contributes only about 30% to the national harvest, despite receiving an average of K7 billion Kwacha annually in budget allocations. 

“This indicates that the majority of food production is coming from farmers who are not benefitting from state support, and they are now being squeezed by unsustainable pricing,” he noted.

He emphasized the urgent need for an inclusive and transparent pricing mechanism that reflects the realities of input costs and market pressures.

“Agricultural sustainability depends on rational economic planning. Without it, both supported and independent farmers stand to lose,” Chisanga concluded.

The FRA has yet to respond to the concerns raised, but industry watchers say time is of the essence as the marketing season unfolds.