Agriculture Subsidies Straining the Economy – Kawale

Minister of Agriculture, Sam Kawale says Malawi needs to transition from subsidies towards commercial and market-oriented farming for it to achieve sustainable agricultural growth and lift her farmers out of poverty.

Kawale laments that's subsidy programmes such as the Affordable Input Programme are placing an enormous strain on the national budget.

Kawale while describing as valid, calls by some agriculture experts on the need to cushion local farmers from high input costs and reflect the immediate realities many Malawian farmers face, says Malawi needs a new farming system.

He says over-reliance on subsidies can create a dependency syndrome, where farmers are less incentivized to seek out efficient farming practices, explore diversified crops as they expect annual government handouts.

In a written response, the minister stressed that commercial farming would encourage farmers to respond to market signals by growing high-value crops that are in demand.

He says commercial farming assists farmers to invest in modern farming techniques, improved seeds and proper fertilization.

 "When farmers are operating commercially, they are more likely to invest in modern farming techniques, improved seeds, proper fertilization (even without subsidies), and mechanization to increase yields and reduce costs per unit," said Kawale.

The sentiments come at a time there has been a growing demand to have the subsidy programmes in the agriculture sector abolishy, as Malawi has continuously face persistent hunger that hugely affects beneficiaries (farmers) under such programmes, year in, year out.

He noted that commercialized agricultural sector attracts private sector investment and makes it easier for farmers to access commercial loans, as their ventures are seen as more viable and profitable.

"This isn't about abandoning our farmers, but empowering them to become more resilient and prosperous," disclosed Kawale.

The minister stressed that funds in such programme could be redirected towards other vital agricultural investments.

"We could push those resources to research and development, extension services, irrigation infrastructure, market access roads, and storage facilities, which have a broader and more sustainable impact," he added.

An agriculture expert, Leonard Chimwaza while agreeing with the minister on the need for a shift, calls for the development strategies that would help bail out most farmers from the challenges they would face due to the move.

"The government need to ensure it reduces cost of production through promotion of locally produced inputs such as fertilizers. This could assist many to find it easier to continue farming without hurdles," noted Chimwaza.

Earlier, an agriculture expert, Ronald Chilumpha, predicted that the number of beneficiaries of the Affordable Input Programme (AIP) will drastically decline this year due to changes in prices of farm inputs on the market.

While another expert, Dr. Horace Phiri suggested an increase in the number of beneficiaries of the AIP to cushion many local farmers from the price hikes.

In the past years, Malawian smallholder farmers have been relying on the Affordable Input Programme (AIP) that has been pegged at K131.6 billion this financial year.

Eamon Piringu

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