Govt unveils FISP reforms

Ministry of Agriculture, Irrigation and Water Development has unveiled a major overhaul of Farm Inputs Subsidy Programme (Fisp) that includes reverting to paper coupons and halving beneficiaries to 610 931. The reforms have also seen mandatory incorporation of production and use of Mbeya organic fertiliser in a bid to improve food security. The ministry has since embarked on a sensitisation of agricultural development divisions (ADDs) on the new operational guidelines for the 2026/27 programme.

Further, the reforms have shifted implementation to farmers’ organisations (FOs) which will identify beneficiaries, distribute coupons and oversee bulk redemption of subsidised inputs under the Decentralised Agricultural Extension Services System (DAESS). Under the new arrangement, 610 931 smallholder farmers will directly receive subsidised inorganic fertiliser and certified seed while 1 221 862 are expected to be indirectly reached through compulsory integration of Mbeya organic fertiliser production. Reads the guidelines in part: “As a condition of programme participation, beneficiaries shall actively engage in the production and utilisation of Mbeya organic fertiliser.

“Extension workers shall provide technical guidance on the preparation, management and application of Mbeya organic fertiliser. Complementary Integrated Soil Fertility Management requirements have been included as part of the programme.” In the K10.9 trillion 2026/27 National Budget, Parliament approved an allocation of K106 billion for input procurement comprising K102 billion for fertiliser and K4 billion for certified maize seed. The total Fisp allocation is K111 billion.

[paywall]

The allocation is less than half the K241 billion spent in the previous season when the programme targeted 1.1 million beneficiaries. Fisp is expected to procure 61 094 metric tonnes (MT) of NPK and Urea through the Smallholder Farmers Fertiliser Revolving Fund of Malawi and 3 054MT of certified maize seed through competitive tenders. Beneficiaries are expected to pay K50 000 to redeem a five-kilogramme (kg) packet of certified maize seed at K10 000 and two 50kg bags of fertiliser, subsidised at K20 000 each.

To combat fraud and political interference, the coupons are set to have unique serial numbers and ministry-approved security features linked to a central database. The guidelines also require that only farmers appearing on approved beneficiary registers receive inputs, with redeemed coupons reconciled against supplies issued and extension workers conducting random verification visits. Reacting to the changes, Lilongwe University of Agriculture and Natural Resources (Luanar) Centre for Agricultural Research and Development director Innocent Pangapanga said the changes were welcome because using farmers’ organisations could improve accountability and reduce diversion of subsidised inputs.

[/paywall]