The government has secured a K5 billion structured loan facility from commercial banks to expedite payments to maize farmers who supplied the Food Reserve Agency (FRA) during the 2025 crop-marketing season.
Agriculture Minister Reuben Mtolo Phiri announced this development in a ministerial statement to Parliament, revealing that the FRA had purchased over 1.6 million metric tonnes of maize worth K11.3 billion from 846,655 farmers, exceeding the initial target of 543,000 metric tonnes valued at K3.6 billion.
The Minister stated that the government has so far disbursed K2.08 billion towards farmer payments and assured that the remaining balance will be addressed through the new loan facility and maize sales to improve liquidity. He emphasized the government’s commitment to paying all farmers in a reasonable time to help them prepare for the next farming season.
Meanwhile, the FRA has assured the nation that it has adequate storage for the 1.83 million metric tonnes of maize, including 167,356 metric tonnes of carryover stock, with additional space secured from the private sector.
