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.
Fisp beneficiaries collecting fetilisers
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.
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.
The organisation’s executive director William Chadza said the K931.1 billion allocated to agriculture sector could spur development if well utilised.
He, however, expressed worry with the reduction of Fisp allocation as it would lead to reduced number of beneficiaries.
But Chadza was quick to note that the figures might have been inspired by the need for reforms.
“One would imagine that even based on the experience in the current season; there are lessons in terms of implementation of the programme, particularly around the timeliness. This has been a major issue because we understand that it’s only about 75 percent in terms of redeeming the inputs,” he said.
Chadza hoped for consideration in the timing for procurement of the inputs, especially inorganic fertilisers and logistical barriers to ensure the resources and inputs are available in time.
He also hoped investments on seed production will help in terms of planning to ensure the seeds are available on time.
With the latest allocation to Fisp, it means government has spent K913 billion towards subsidy programmes in the last six years benefiting about 13 million Malawians.
On the other hand, over the last five years, taxpayers have footed a staggering K873 billion bill for emergency food aid, targeted at feeding millions food-insecure people.
In 2025, Malawi’s maize deficit stood at 600 000 metric tonnes after only 2.9 million metric tonnes were realised in the 2024/2025 growing season against a requirement of 3.6 million metric tonnes.
The Malawi Vulnerability Assessment Committee report said an estimated 4 million Malawians were going to face hunger in the 2025/26 consumption period, representing 22 percent of the country’s projected population of 18.5 million
Government bought 200 000 metric tonnes of maize from Zambia to reduce the maize deficit and ensure food security.
An Afrobarometer survey released in February 2025 confirmed public disillusionment, showing that a majority of Malawians believe the AIP primarily benefits agro-related businesses or public officials, rather than the intended smallholder farmers.
The original Fisp, introduced in 2005/06, was initially hailed as a success, but with the passage of time and evidence of continued hunger, experts now agree that without drastic structural reform, the AIP will continue to be a costly burden that fails to fulfil its promise.
