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No Universal Fertilizer Subsidy in Budget

The Malawi government through Minister of Finance Felix Mlusu says only 4.2 Million Smallholder Farmers will benefit from the Affordable Inputs Programme(AIP) contrary to the Tonse Alliance manifesto.

Finance Minister Mlusu before presenting the budget

In its Manifesto-the governing Tonse alliance which made up over nine political parties including Malawi Congress Party (MCP) and UTM Party promised universal Fertilizer Subsidy only to change tune after elections.

Speaking when presenting the 2020/21 National Budget on Friday at New Parliament Building in Lilongwe, Finance Minister Mlusu said only 4.2 Million farmers access the cheap fertilizer  which will be sold at MK4,495.00 per 50Kg bag.

“This not far from being a universal subsidy program assuming an average family size of four people, which gives approximately 16.8 million people that will be covered under this program out of the 17.6 million people in Malawi.

In this regard, Madam Speaker, there is no sampling of farm families to benefit from this program as every smallholder farmer is covered. 44,” said Mlusu

He added: “Each farming household will purchase two 50 kg bags of fertilizer at a price of MK4, 495.00 per bag.  

“As I announced in this August House during my presentation of the Provisional Budget, implementation of the AIP will use an electronic system as opposed to paper coupons,”

According to Mlusu, farmers will be using the National Identity Cards as one way of ensuring transparency and efficiency.

The 2020/2021 budget has been pegged at MK 2.2 trillion representing a 30.6 percent of Gross Domestic Product (GDP).

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