The Economic Association of Zambia says the selling of maize to millers by the Food Reserve Agency at a reduced price to cushion the high mealie meal prices amounts to a subsidy.
EAZ chairperson Noel Nkhoma however noted that move was not sustainable in the long term as FRA did not have adequate stocks after small scale farmers shunned them for offering an uncompetitive price for buying the maize.
Nkhoma said FRA needed to put its house in order to ensure that there is a stable stock of maize to avert crises.
The Food Reserve Agency says it will be selling maize to at K85 to cushion the sky rocketing mealie meal prices.
Mealie meal prices are as high as high as K85 on the market and the trend is spreading across the country.
Government early this year removed the subsidy on maize leaving consumers at the mercy of millers.
The post Economists Asks FRA to Put its House in Order appeared first on Zambia Reports.