FUM faults budget, Sona mismatch

Farmers Union of Malawi (FUM) has faulted a mismatch between priorities outlined in President Peter Mutharika’s State of the Nation Address (Sona) and the 2026/27 National Budget Policy Statement. FUM, in an assessment of the budget policy statement signed and issued yesterday by chief executive officer Jacob Nyirongo, said while the Sona placed strong emphasis on agriculture as a driver of economic recovery and structural transformation, the proposed budget allocations do not fully reflect that commitment. The union noted that K931.1 billion has been allocated to the agriculture sector, representing 8.5 percent of the total national budget, which falls short of the 10 percent target under the Comprehensive Africa Agriculture Development Programme (Caadp) Malabo Declaration.

FUM argues that failing to meet this benchmark signals weak financial commitment to agricultural transformation despite the strong policy tone set during Sona. It further lamented the sharp reduction in the Farm Inputs Subsidy Programme (Fisp) allocation from K241 billion in the previous fiscal year to K111.45 billion in the next financial year. Reads the assessment in part: “Given the continued upward trend in farm inputs prices, this significant reduction will inevitably limit the number of beneficiaries the programme can reach.

“This trajectory stands in stark contrast to the country’s pressing food security needs, particularly as an estimated 5.7 million Malawians are currently facing high levels of acute food insecurity.” FUM also highlighted that no funds have been allocated for domestic fertiliser production despite the President highlighting the initiative as a key strategy to reduce dependence on costly imports. Meanwhile, agricultural experts Tamani Nkhono-Mvula and Leonard Chimwaza have also backed FUM’s observation, describing the concerns as legitimate. In a separate interview, Nkhono-Mvula said he also observed the apparent disconnect between the priorities highlighted in Sona and those reflected in the budget policy statement.

[paywall]

He said he expected either Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha or Minister of Agriculture, Water and Irrigation Roza Mbilizi to clarify the issue. On his part, Chimwaza said several issues highlighted in Sona were not reflected in the budget policy statement, including the plan for local manufacturing of fertiliser. “What FUM has analysed is quite true.

So on the Caadp Malabo Declaration, we are only banking on Parliamentary Committee on Agriculture to lobby for an increased allocation to meet the 10 percent target,” he said. He said allocations such as K40 billion for National Irrigation Development Programme, K3 billion for aquaculture and K2.5 billion for livestock development indicate a policy shift from reliance on subsistence farming towards commercial production.

[/paywall]