President Lazarus Chakwera has come out to justify his decision to subsidize maize prices at ADMARC.
Recently, the produce marketer opened up its markets and announced it will be selling the grain at a subsidized price of 160 kwacha per kilogram.
This has turned economic heads, as it entails that ADMARC would be selling at a loss, because it bought the grain at 200 kwacha per kg from growers using a loan.
ADMARC has itself been struggling financially lately and asked for the government bailout.
But addressing the nation last night, President Chakwera disclosed that the move is aimed at cushioning those who are losing income-generating activities due to the Covid 19 pandemic.
Chakwera added that the move would help such people afford food.
But earlier, an agriculture economist Tamani Nkhono Mvula warned the government against increasing subsidies, arguing that it may put pressure on the Treasury.
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