Government To Amend FRA Act To Allow Maize Export
Vice President Inonge Wina has announced that the government will amend the Food Reserve Agency (FRA) act to address issues surrounding the export of maize, among other issues.
Speaking to the Zambia Chamber of Commerce and Industry (ZCCI), the vice president said the rules were not intended to punish farmers but rather to save lives by ensuring strategic food reserves.
She was responding to concerns raised by Chipata District Farmers Union chairman Vigil Malambo who said the government should allow farmers to export maize, especially when the FRA fails to offer a competitive price.
“Government should consider giving export licenses to traders who will be paying tax to allow them sell the grain anywhere, this way everyone will benefit”, he said.
In response Mrs Wina said the government would introduce an act to allow certain farmers to be granted export permits.
The government aims to reserve 1 million tonnes of maize each year, but often struggles to do so when foreign grain buyers rush the market before the moisture count adequately drops.
“Because of this trend, FRA finds limited stocks by the time it starts buying. This is why government is forced to put in these restrictions, to ensure there is enough good to respond to unforeseen situations” Mrs Wina explained.
ZCCI vice president Laurian Haangala has appealed to the government to encourage companies it deals with to register with the Chamber of Commerce, which will lead to greater confidence from foreign investors.
“It is important that business companies belong to the Chamber, this will rule out uncertainties on the genuineness of such companies. And government is key in ensuring this is attained”, he said.