Fiscal year change failsto deliver for farmers

Almost five years after government shifted Malawi’s fiscal year from July–June to April–March, the promised benefits have yet to materialise.

The reform, announced in December 2020, was intended to ensure earlier funding for farm input imports and timely support for institutions such as the Agricultural Development and Marketing Corporation (Admarc) and the National Food Reserve Agency (NFRA).

Officials argued that budgets approved in June and implemented from July were too late to secure fertiliser and other inputs before the planting season.

Yet analysis of the past four seasons shows that farm input imports have remained delayed, undermining subsidy programmes and other agricultural initiatives. Farmers continue to sell produce at low prices to traders, often before Admarc markets open.

At Mgona Trading Centre in Lilongwe, shelled groundnuts were selling at K2 100 per kg, far below the government’s recommended K3 500 per kg.

“Admarc is yet to open its market here, so we have no option but to sell to vendors at lower prices,” said farmer Kondwani Esawu of T/A Khongoni.

“We need cash to survive and repay loans, but Admarc always opens late.”

Budget allocations to Admarc and NFRA have fluctuated, with funding often arriving months after harvest. In 2021/22, Admarc received K4 billion and NFRA K8 billion, but maize purchases began only in August — five months after harvest.

In subsequent years, allocations rose, but institutions still entered the market late or failed to purchase altogether.

Then secretary for economic planning and development and public sector reforms Winford Masanjala said the budgets appropriated in June and implemented from July were late for the timely provision of resources for importing agricultural inputs.

“To ensure that the country has fertilisers and other inputs by the start of the agricultural production season, the import logistics require that the process be funded and commence much earlier.

Yet the Affordable Inputs Programme (AIP) faced similar setbacks. Despite billions allocated annually, fertiliser supplies have consistently fallen short. In 2023/24, only 29 000 metric tonnes were available against a requirement of 150 000 metric tonnes. In 2024/25, just 16 000 metric tonnes were in stock against a need of 104,000 metric tonnes, leaving farmers stranded.

Experts say the fiscal year change has not addressed deeper structural problems. Economics Association of Malawi president Bertha Bangara Chikadza  noted that statutory expenditures consume over 90 percent of domestic revenue, leaving little room for timely disbursements.

“Changing the fiscal year has altered the budget timeline, but it hasn’t resolved the fundamental structural issues. The importation of fertiliser still relies on the availability of foreign exchange, efficient procurement processes, and supplier capacity not just the budget approval date.

“Additionally, Admarc and NFRA continue to struggle with delayed cash releases, governance challenges, and limited flexibility. Since these deeper issues remain unaddressed, the shift to an April–March fiscal year has not led to earlier fertiliser imports, quicker maize purchases, or enhanced support for farmers,” said Bangara Chikadza.

Agriculture economist Innocent Pangapanga Phiri added that poor planning remains the biggest obstacle.

“Malawi should not be struggling with late fertiliser procurement when we have minerals to produce fertiliser locally. It is high time we invested in domestic production,” he said.

Farmers Union of Malawi president Mannes Nkhata lamented that government continues to delay financing despite agriculture’s seasonal nature.

“Inputs are perpetually sourced late, and markets open after farmers have already sold to vendors. It is no surprise agricultural GDP growth is declining,” he said.

Finance Minister Joseph Mwanamvekha admitted that the fiscal year change has not been effectively executed.

“We usually face competition for resources that’s why we delay in disbursing funding for key institutions like Admarc and NFRA. However, our promise is that during this financial year, we will provide those resources in time to support both purchase of crop produce and importing of farm inputs which often times is supported by our friends in private sector,” said Mwanamvekha.

 He pledged that resources for crop purchases and farm inputs would be released on time in the current financial year.

But for farmers like Esawu, promises mean little without action. Each season, they face the same cycle: late inputs, delayed markets, and low farm gate prices. Five years on, the fiscal year reform remains a change on paper, not in practice.

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