Admarc general manager Ben Botolo told the Parliamentary Cluster Committee on Agriculture and Food Security and Natural Resources, Energy and Climate Change in Lilongwe on Friday that with only K60 billion allocated in the budget, the corporation will be forced to seek short‑term local and trade financing of K80 billion, incurring interest costs of about K10 billion. Botolo also appealed for a bailout to settle loans obtained from CDH Bank which stand at K39.5 billion saying they are hindering the institution from accessing finances to manage its operations. Botolo said government should settle the loans to enable the institution to start on a clean slate and secure finances to improve its operations.
He said: “Admarc has two legacy loans with CDH bank that were used to procure maize for price stabilisation purposes and currently at K39.5 billion. These loans are costing Admarc not less than K9.8 billion annually in finance charges. Of course there is an indication from government that they will clear the loan” Botolo also expressed concerns over the delayed disbursement of funds, saying this has affected timely entry into the market eventually forcing the corporation to face stiff competition from private traders in the purchase of crop produce.
He said in the current fiscal plan, Admarc was allocated K53.7 billion but only received K5.5 billion, slightly over 10 percent of the allocated amount adding that K2.5 billion of this amount was delivered in February 2026, leading to reduced volumes of commodities purchased and late entry into the market. Admarc managed to purchase a cumulative 22 224 metric tonnes of produce, short of the 65 200 metric tonnes target, including 16,441 metric tonnes of maize, 2 308 metric tonnes of beans, and 1,148 metric tonnes of cotton among others. In the upcoming fiscal year, Botolo said Admarc plans to buy 38 500 metric tonnes of varied crops with a maize target of 20,000 metric tonnes on top of selling 50 000 metric tonnes of fertiliser and 800 metric tonnes of seeds on a consignment arrangement with suppliers.
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He also said the corporation plans to venture into agricultural production on a 1 000 hectare piece of land, with a projected budget of K3.4 billion which includes operational costs and wages. The corporation also plans value-addition initiatives for some of the commodities it will purchase, such as rice milling, groundnuts grading, cotton ginning, and maize milling. “Admarc projects an operating profit of about K4.8 billion and net profit of about K9.7 billion.
Admarc is financially viable with adequate funding. The net profit of Admarc is being largely eaten by high borrowing costs representing that we give out two thirds of our profits and remain with one third for reinvestment” added Botolo. Co-chairperson of the cluster committee Tiaone Hendry said the produce marketing company needs to be bailed out as it has demonstrated prudence in the management of resources.
“As a committee, our biggest role is to lobby through the Ministry of Finance to make sure that they have been given enough support because you can agree with me, Admarc has been on a deathbed for quite some time and it really looks like it’s not a viable institution,” said Hendry. Agriculture expert Ronald Chilumpha said there is need for members of Parliament to take an active role in making sure that Admarc is fully funded and receives funds on time while former Admarc general manager Felix Jumbe said over the years the corporation has been used as a government agent for implementing social activities. Jumbe said getting Admarc back on its feet would require government to avoid meddling in the institution’s operations and allow it to operate commercially.
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