Fisp allocation slashed by 54 percent in budget

Government has slashed spending on Farm Inputs Subsidy Programme (Fisp) by almost 54 percent in the 2026/2027 National Budget, signalling possible reduction in the number of beneficiaries. Presenting the fiscal plan in Parliament on Friday, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said government has allocated K111 billion to Fisp, with an additional K11 billion for maize seed production to reduce forex expenditure on importation. He, however, could not commit on the number of beneficiaries.

The subsidy programme has existed for over 20 years, with only a change in names by different regimes. The latest budget is almost half of what was spent in the 2025/2026 fiscal year where K241 billion was allocated to the programme, targeting 1.1 million beneficiaries across the country. To date, 75 percent of the beneficiaries have redeemed their fertiliser, translating to about 825 000 people.

“Resources amounting to K931.1 billion have been allocated to the agriculture sector in the 2026-27 budget. Of this amount, K111.45 billion is earmarked for Fertiliser Input Subsidy Programme for the 2026-27 growing season. “In order to reduce the price of seed, save foreign exchange and increase availability, K11.3 billion has been allocated for Maize Seed to be produced and purchased locally,” said Mwanamvekha.

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Still on agriculture, National Food Reserve Agency (NFRA) has been allocated K60 billion to replenish the Strategic Grain Reserves and achieve national food self-sufficiency. The amount, according to Mwanamvekha, will pay for more than 103 000 metric tonnes imported from Zambia last year. Further, an additional K60 billion has been allocated to Admarc to buy commercial maize and other crops and K26.7 billion for contract farming activities.

“To reduce the country’s overdependence on rain-fed agriculture, resources amounting to K40 billion have been allocated for the National Irrigation Development Programme. An allocation of K14 billion has been made to various Mega Farms initiatives currently being undertaken by Malawi Prison Services; Lilongwe University of Agriculture and Natural Resources; Department of Fisheries; and Malawi Defence Force. “It is, therefore, pleasing to note the Mega Farm initiative has diversified to include Aquaculture Mega Farms that have been allocated resources amounting to K3 billion. This is a deliberate effort by government to boost fish production for local consumption and exports,” added Mwanamvekha Agriculture think tank, Mwapata Institute, has hailed a number of positive investments in agriculture.

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