The government has stepped in with N$40 million to purchase unsold grain from local farmers after weak market uptake left produce from the previous cropping season in storage.
Executive Director in the Ministry of Agriculture, Fisheries, Water and Land Reform Perus-Canisius Nangolo said the funding was made available following concerns from farmers struggling to secure markets for their grain.
“They have also informed the government that the uptake of grain harvested during the previous cropping season was not particularly high. Therefore, the government, through the Ministry of Agriculture, Fisheries, Water and Land Reform and the Ministry of Finance, has made N$40 million available to increase the uptake of the grain,” Nangolo said.
The N$40 million has been channelled through the Agro-Marketing and Trade Agency (AMTA), which will be responsible for purchasing the grain and engaging farmers on the requirements and procedures for selling their produce.
The intervention is aimed at providing an immediate market for farmers whose grain remains in storage, where prolonged storage could result in deterioration and financial losses.
However, the government acknowledged that the N$40 million may not be enough to purchase all the grain currently held by farmers and said efforts are under way to secure additional funding.
“The Ministry acknowledges that the N$40 million may not be sufficient to procure all grain currently held by farmers. It is therefore important to clarify that this funding constitutes an initial, provisional intervention aimed at addressing the immediate market challenges facing farmers. The Ministry continues to explore and secure additional funding to expand the procurement programme,” Nangolo said.
The Ministry has urged AMTA to expedite the procurement process and engage farmers without further delay, given the urgency of moving grain that has remained in storage.
The intervention forms part of government efforts to improve market access for local producers, increase the uptake of domestically produced grain and support national food security.
