The Food Reserve Agency (FRA) has announced that farmers would be able to receive their payments upon delivery of their maize unlike in the past.
FRA Board Chairperson Kelvin Hambwezya said this had been activated to enable the agency to favourably protect farmers from incurring losses as they sell their crops. He said this through a press statement.
“In view of this year’s ongoing crop marketing season and further observations that farmers in some areas are selling their maize at a lower price due to the fact that they are being paid cash immediately, the Food Reserve Agency (FRA) has with immediate effect started paying cash to farmers upon delivery of their maize,” reads a statement from the Agency.
According to the statement, the move is intended to help the Agency protect farmers from making a loss as they sell their crops. The Agency revealed that it is also confident that the move will boost agriculture productivity during this year’s farming season.
“This has been necessitated to enable the Agency to favourably protect farmers from making a loss as they sell their crops. This will ensure that farmers get value for their maize and further result in the Agency adequately replenishing National Strategic Food Reserves. This decision will also enable farmers to prepare for the upcoming farming season and pay for the FISP Programme that is already in progress countrywide.”
“The Agency is confident that this initiative will further boost agricultural productivity during this year’s farming season, resulting in sustained National food security. This intervention measure has been made to respond to the current market dynamics and ensure that farmers get their money on time. Further, the Agency shall ensure that sufficient marketing prerequisites such as empty grain bags are made available for this exercise to not inconvenience farmers.”