ADMARC Has Adequate Funding To Eradicate Food Shortages-Muthatika Tells Parliament

President Peter Mutharika has informed Parliament that in the 2016/2017 Financial year, Government has provided to Agriculture Development Market Corporation (ADMARC) with adequate financial resources to procure maize as one way of addressing food shortages.

Addressing Parliament today at the opening of Third Meeting in the 46th Session of Parliament to consider the 2016/2017 Budget Mutharika said over three million Malawians will be food insecure.

But he said to address food shortages in the 2016/2017 financial year, Government has provided ADMARC with financial resources to procure maize soon after harvest to ensure that markets are fully stocked with commercial maize. 

He further informed the House that Government has also invited interested private sector investors to undertake commercial irrigation farming in order to boost maize production beginning this year adding that the programme will also involve medium-scale farmers and smallholder farmers to either utilize their existing irrigation facilities or rent unutilized irrigable land. 

In his State of National Address titled "Towards Recovery and Sustainable Socio-Economic Development” President Mutharika also mentioned that Agriculture  be the highest priority sector because it will ensure both national and household food security as well as support agro industries. 

Mutharika also informed the August House that he has directed that FISP should undergo further reforms to ensure that the programme is efficiently and effectively implemented. In the end, FISP must be run like in the private sector.

He also said the economy is slowly stabilizing citing the resumption of the Extended Credit Facility with International Monetary Fund (IMF) as testimony that the austerity measures and fiscal discipline are bearing fruits.

He added Government is optimistic that Malawi can do better and further assured the House that "we expect to improve the macroeconomic indicators for our economy as" a result of various measures Government has put in place.

He then indicated that the economy is expected to register a real GDP growth rate of 5.1 percent in 2016, and 7.0 percent in 2017 while the annual average rate of inflation is expected to fall from 21 percent in 2015 to 19.8 percent in 2016, with further improvements in 2017 and beyond.

In the ending 2015/2016 financial year on macro-economic environment and reforms, Mutharika noted that the Budget performance has been influenced by shocks caused by pressures from the rising food prices, exacerbated by low production of maize in the 2015 growing season due to floods, dry spells and early cessation of rain in most parts of the country. 

He said these effects the economy grew by only 3.1 percent in 2015 despite an earlier projection of 5.4 percent growth rate while the rate of inflation remained high at 21.8 percent in 2015 as compared to the projected rate of 16.4 percent. 

He further informed the House that the Domestic debt stock increased to K526.4 billion in 2015 as compared to K487.0 billion at the end of 2014. However, he said domestic debt as a ratio of GDP dropped from 15.6 percent in 2014 to 8.9 percent in 2015.

The opened Third Meeting in the 46th Session of Parliament to consider the 2016/2017 Budget this Friday, May 20 will end on Friday, July 8, 2016.