The Agricultural Development Marketing and Corporation continues to sail through financial troubles as the Agriculture and Natural Resources Cluster threatens not to pass the Agriculture vote if Admarc is not funded.
On Tuesday the Cluster met Admarc, Agriculture ministry, Trade and ministry of finance to discuss Admarc’s financing as the 2022/2023 National Budget has allocated k12 billion kwacha to Admarc to purchase maize on behalf of National Food Reserve Agency (NFRA).
Speaking during the meeting, Rhino Chiphiko General Manager for Admarc said Admarc wanted k48 billion for maize purchase and other commercial crops.
He said without this money Admarc will face challenges purchasing maize from farmers this season.
According to Chiphiko Admarc further needs 23bn billion kwacha which government is owing it. On top of that he told the cluster that Admarc also needs a bailout of 31 billion kwacha.
“Admarc is also in need of 20 billion kwacha to embark on maintenance of its existing infrastructures and k7.7 billion kwacha to finance the turnaround strategy” said Chiphiko.
Chiphiko who told the Cluster that Admarc is struggling to pay salaries for its Staff also told the members of Parliament that Admarc is spending over k600 million paying salaries to collateral managers that were employed by the Banks it is owing.
He added that Admarc has lost a big market share to extent it has only 15% on the market, citing Admarc not being independent among the reasons.
Admarc which plans to import fertilizer amounting to about k167 million kwacha this year, has also reported losses of k14 billion kwacha in the year 2021 alone.
Chiphiko has asked government to issue letters of credit to Admarc to import the fertilizer.
But Sameer Suleman Co-Chairperson of the Cluster has asked for immediate funding towards Admarc saying failure to do so will lead to Admarc’s death.
He has threatened that they will not approve the Agriculture’s vote if no funding is made to Admarc.
