Transcript THE 2007/2008 AGRICULTURAL INPUT SUBSIDY PROGRAMME …

AGRICULTURAL INPUT
SUBSIDY PROGRAMME
By
Idrissa Mwale
Ministry of Agriculture and Food Security
P.O. Box 30134
Lilongwe 3
September 2008
Email: [email protected]
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BACKGROUND
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Malawi’s economy - agro based with 85% depending and
surviving on subsistence farming.
Agriculture sector generates over 90% of the country’s
export earnings.
Contributes 40% of the GDP.
Smallholder sector with 3.2 million households – less than
1 ha of land.
Smallholder sub-sector dominates with a contribution of
75% of the food crop production in the country.
Since Malawi got independence in 1964, the agricultural
sector has undergone through several policy reforms.
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BACKGROUND
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Bad weather impacted the production
Prolonged food shortage – between
2000 and 2004
National yields were as low as 0.81 MT
per ha in 2004/2005
Political commitment to implement the
Input Subsidy Programme
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Main Goal for ISP
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The main objective of ISP
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Improve national food security
The immediate objective
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Improve accessibility and affordability of
agricultural inputs among the most
vulnerable farmers in the country
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BACKGROUND TO ISP
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2005/2006 ISP
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147,000 mt of fertiliser for both maize and tobacco production
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A surplus of approximately 500,000 mt of maize
2006/2007 ISP
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176,000 mt of fertiliser
 156,000mt for maize growers
 20,000 mt for tobacco growers
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A surplus of about approximately 1.1 million mt of maize
2007/2008 ISP
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216,500 mt of fertiliser
 193,000 mt
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23,500 mt
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A surplus of about approximately 500,000 mt of maize has been
produced
Current food requirement – 2.4 million metric tonnes
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Maize production VS
national requirement
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
Maize production
National Requirement
1,500,000
1,000,000
500,000
2001
2002
2003
2004
2005
2006
2007
2008
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OTHER CROPS
CROPS
Production (Metric Tonnes)
Rice
Groundnuts
Pulses
Cotton
Cassava
Sweet Potato
Potato
Wheat
Millet
Sorghum
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101,633
242,628
352,665
76,861
3,491,183
1,711,864
353,855
2,278
31,868
61,999
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BENEFICIARY IDENTIFICATION
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Farm family verification
Update farm family registers
Pre-registration of beneficiaries
Village Development Committee oversees the
pre-registration of beneficiaries
Dates and places are announced in advance
A Beneficiaries register be kept in the Village,
Extension Planning Area, District and
Agriculture Development Division.
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BENEFICIARY IDENTIFICATION
Criteria for beneficiary identification include:
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A Malawian that owns a piece of land
Vulnerable household, with low purchasing power
Guardian looking after physically challenged persons who are
unable to farm
Adopter of new technologies
Resident of the village
The vulnerable group-Child headed household, Female headed
household, Elderly but hard working household
A combination of this is used in identifying the beneficiaries
One beneficiary per household is registered
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BENEFICIARY IDENTIFICATION
- CONT
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Verification Team: the team verifies registers of
beneficiaries and constitutes the following:
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Village Development Committee
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Agricultural staff
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Community police and
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District Assembly
To ensure that the final figures match with the
coupon allocation.
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DISTRICT BENEFICIARY
MATRIX
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Compilation of all farm families
 Village data
 District data
 ADD data
 National database
Develop beneficiary matrix
Two factors are used:
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Number of farm families
Land area
Previous demand for a particular inputs
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MODE OF DISTRIBUTING
INPUTS TO BENEFICIARIES
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Use of coupons being the best approach
in reaching out to the beneficiaries
Printing services are advertised
Internal Procurement Committee
evaluate the tender and award the
contract
Coupons printed basing on the district
beneficiary matrix
COUPON DISTRIBUTION
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Dates are announced in advance for the beneficiaries
to gather at an open fora
Those registered receives the coupons as follows:
 Maize growing – NPK (23:21:0 + 4S), Urea &
Maize seed coupons
 Tobacco – D Compound (8:18:15) & CAN
 Others – flexible coupons (cotton, ground nuts,
common beans, soya beans, pigeons peas).
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COUPON REDEMPTION
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Farmers free to use the coupons in any
recognised retail shop across the country
The trader collects the fee (Mk 900 for
fertiliser last year) and the coupon
Submit the coupons to the Ministry through
the Logistics Unit for payment
Payment based on submitted coupons only
The Traders submits an invoice on the same
PROCUREMENT OF INPUTS
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Fertiliser procured under the
International Competitive Bidding
process – follow standard procedures
Internal Procurement Committee
evaluate the tender documents
Successful bidder sign a contract with
Government
DELIVERY & DISTRIBUTION
OF INPUTS
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Three channels are used as follows:
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Deliver the fertiliser to designated
warehouses in three main regions
Deliver some of the contracted fertiliser
and retail part through the existing outlets
Retail all the contract through the existing
retail outlets
Most of the fertiliser is imported by the
private sector – over 75%
TRANSPORTATION
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Transport services are contracted out
Tenders floated in the papers
IPC evaluate and award contracted to
transporters priority to those with a
large fleet of vehicles
Transport the inputs to assigned routes
This is 100% private sector
LOGISTICS UNIT
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Handles the movements of inputs to the retail
markets
Replenishes stock in all the markets
Receives the coupons from the traders
Compiles the coupons
Reconciles the coupons together with the invoice
Submits the invoice after verification to Ministry for
payment
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ISP TASK FORCE
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Membership of the Task Force:
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Ministry of Agriculture
Ministry of Finance
Malawi Police Service
Donor Community
Fertiliser Association
Seed Traders Association of Malawi
UN Agencies
To review progress
Address critical issues relating to the implementation
of the programme
Provide feedback to stakeholders on any issues
raised
MANAGEMENT OF THE
PROGRAMME
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Institutional arrangement
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Ministry’s Management provides overall policy
guidance
Secretariat oversee the implementation of the
programme
Logistics Unit provides logistical support
Agricultural Development Divisions backstops the
implementation
The districts implement the programme
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COUPON DISTRIBUTION
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Beneficiary matrix developed on three levels
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Extension Planning Area
District
ADD
Flow of coupon
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Hand over to District Agriculture Officer in
presence of District Assembly officials
Hand over to agriculture official
Distribution to beneficiaries by the frontline staff
the VDC, village headmen and all village
members: NGOs if present in the village
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Management structure
MINISTRY OF AGRICULTURE AND FOOD SECURITY
MANAGEMENT
INPUT SUBSIDY PROGRAMME SECRETARIAT
LOGISTICS UNIT
AGRICULTURE
DEVELOPMENT DIVISION
DISTRICT ASSEMBLIES
DISTRICT
AGRICULTURE
OFFICE
ADMARC, SFFRFM AND PRIVATE
TRADERS
AREA DEVELOPMENT
COMMITTEE
EXTENSION PLANNING AREA
BENEFICIARIES
VILLAGE DEVELOPMENT
COMMITTEE
Coupon Flow
Communication and
coordination
Registration Process
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IMPLEMENTATION OF ISP
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Sensitization and Beneficiary Selection
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The Ministry carries out sensitization campaign at
all levels
Mainly the beneficiaries and other stakeholders
The sensitization mainly covers:
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Technical messages,
Beneficiary identification
Beneficiary pre-registration
Coupon distribution and redemption
Availability of commercial inputs within the areas
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Private Sector participation
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Private Sector participates in the programme
in all the 2005/2006, 2006/2007, 2007/2008
Private sector participation was about 35%
Seed was 100% supplied by the Private
Sector
Increased input uptake among smallholder
farmers
Agro-dealers are allowed to participate as
long as they link up with any company having
a contract with the Government.
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SECURITY FEATURES
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Use of different security features in
each programme
Each coupon for one commodity
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MONITORING & EVALUATION
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Monitoring at all levels
At district level – district teams
ADD – Directors assigned to each Agriculture Development
Division
Ministry HQs supervision and backstopping support
ISP Task Force meetings
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COMMUNICATION
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Technical and other important messages are disseminated
through:
 Print and Electronic media
 Drama
 Radio and TV debates
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Financing arrangements
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Government of Malawi
DfID
Norway
EU
WB
Irish aid
UNDP
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Program Expenditures
Description
Actual Expenditure
As a Percentage
Suppliers of fertilizer 10.7 billion
64
Transporters
859 million
5
Redemption of fert.
coupons
3.2 billion
19
Redemption of seed
Coupon
1.05 billion
6
Operational costs
304 million
2
Other Costs
654 million
4
Total
16.7 billion
100