SFFRFM SEEKS 75 PERCENT OF FISP FERTILIZER PROCUREMENT CONTRACT

The Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM) has asked government to award it 75 percent of this year’s fertilizer procurement contract under the Farm Input Subsidy Programme (FISP).

The Fund says the request is in line with its mandate to ensure that smallholder farmers have timely access to affordable agricultural inputs. It has also indicated that it has the capacity and experience to handle a significant share of the procurement and distribution process.

The request comes as government implements major changes to this year’s FISP following a sharp reduction in programme funding.
Government has allocated K111.45 billion to FISP for the 2026/27 farming season, down from K241 billion in the previous season—representing a reduction of more than half.

Under the revised programme, the Ministry of Agriculture plans to procure about 61,094 metric tonnes of NPK and Urea fertilizer through SFFRFM, while 3,054 metric tonnes of certified maize seed will be procured through competitive tenders.

The new FISP guidelines have also reduced the number of farmers receiving subsidised inputs directly to 610,931.

These beneficiaries will receive subsidised inorganic fertilizer and certified seed.

However, the programme is expected to reach a total of 1,221,862 farmers through the mandatory production and use of Mbeya organic fertilizer.

Beneficiaries will be required to participate in producing and using the organic fertilizer, with extension workers providing technical guidance.

Another major change is the increased role of farmer organisations in identifying beneficiaries, distributing coupons and overseeing the redemption of subsidised inputs.

The reforms are intended to widen the programme’s reach while keeping it within the reduced budget.

The funding cut comes at a time when fertilizer prices have also risen. Reports indicate that the price of a 50-kilogramme bag has increased from around K130,000 last season to between K180,000 and K210,000, adding further pressure to the programme.

SFFRFM says securing a larger share of the procurement contract would enable it to contribute more effectively to the timely delivery of fertilizer to farmers ahead of the 2026/27 farming season.

The Fund is mandated to finance the importation and supply of fertilizer in support of smallholder farmers and operates a network of retail outlets and agro-service providers across the country.

The success of this year’s FISP will largely depend on timely procurement, efficient distribution and effective identification of beneficiaries, particularly amid reduced funding and rising agricultural input costs.