IAPRI 2016 BUDGET ANALYSIS

HAPPY MULOLANI Indaba Agricultural Policy Research Institute (IAPRI) commends government’s efforts to boost the agricultural sector in its 2016 budget. Researcher and Public Policy and Expenditure Expert Auckland Kuteya in his 2016 budget analysis held at Taj Pamodzi hotel in Lusaka recently, says the plans to increase irrigation by 5,000ha is a positive stride. Mr Kuteya further adds that the implementation of e-voucher to 480,000 small- scale farmers and the establishment of additional livestock breeding centres will also boost the agricultural development and contribute to the growth of the economy. Mr Kuteya, however points out that despite Fisheries being allocated K5million in this year’s budget, who will lead the development of these acqua parks in order to ensure they remain sustainable. ‘’There is a drop of all agriculture research stations, fisheries research, and livestock development. Looking at the agricultural budget, it is not putting emphasis on long-term productive investments, as they have potential to give high pay offs though it takes time to achieve,’’ he said. He also alludes to the fact that there is need to assess the pay offs in rural areas. While IAPRI Researcher Dr Chapota alludes to the fact that the focus has been more on short-term benefits, while resources are scarce. It is also clear that Food Reserve Agency (FRA) & Farmer Input Support Programme (FISP) are difficult programmes, what is needed is to try to make them better and reduce FRA activities. ‘’Our emphasis goes to input support, FISP & FRA, have high political pay offs, in terms of sustained growth, which is not clear in rural areas, adding that these are some of the under-appreciated facts, we need to shift to productive areas,’’ says Dr Chapota. He points out that what is needed is to crowd in private sector participation in these activities to ensure the agricultural sector grows. ‘’We would want, when you change mechanism, it crowds in the private sector and ensures government participation, ‘’he said. Dr Chapota also says trade is good as along as it has tangible benefits, therefore, there is need to be creative and stop putting pressure on the Minister of Agriculture to close the borders as it has diverse opportunities. IAPRI Researcher Ballad Zulu is of the view that, if investment in agricultural production, research and development is enhanced, there will be increased production in smallholder production. And Minister of Agriculture Given Lubinda encourages research institutions to give insights on various agriculture interventions to boost the agriculture sector. He revealed that government was concerned that farmers could not even afford the cost of fertiliser on the market hence the relevance of FISP to ensure production does not become static. ‘’FISP has contributed to the bumper harvest in the past year, but at a what cost,’’says Mr Lubinda. He reiterated government’s commitment to the e-voucher, adding that the funds allocated this year is the same last as year. Mr Lubinda pointed out that this year, the e-voucher will target 1,000,000 beneficiaries and it is hoped this will assist in alleviating hunger. Mr Lubinda says that strategic reserves will be held while allowing the private sector to also play a key role in marketing of farmers maize.