The government can set the farmer contribution to fertilizer subsidized through the Affordable Input Programme (AIP) so that farmer demand for the commodity matches available supplies under the program. For any given budget dedicated to subsidizing fertilizer, this approach will maximize food security gains through two distinct channels. First, it will maximize the total amount […]
Policy Note 46: Are Fertilizer Subsidies in Malawi Value for Money?
It is easy enough to calculate how much the Government of Malawi spends on subsidizing chemical fertilizer. Last year, for example, this was MWK 120 billion (about US$ 150 million) taking up over 50% of the agricultural budget. It is much harder, however, to calculate the benefits that these subsidies bring about and how they […]
Policy Note 45: Regulation of Agricultural Markets in Malawi
Agriculture holds special significance in Malawi, because most Malawian households depend primarily on this sector for income and food security. Therefore, legislation surrounding the agricultural sector, and the foundation it lays for the sector’s governance, are fundamental to the development prospects of the country. At their best, agricultural laws encourage farmers, traders (both domestic and […]
Policy Note 44: Impacts of the War in Ukraine on Malawi
Although geographically distant, there are multiple channels through which Russia's invasion of Ukraine can affect the lives of Malawians. Before the invasion, Russia's and Ukraine's exports accounted for about 12% of total calories traded in the world, and the two countries were among the top five global exporters for many important cereals and oilseeds, including […]
Policy Note 43: Guiding Principles of AIP Reform
Most input subsidy programs to date have focused on increasing fertilizer use, with little attention to helping smallholder farmers use fertilizer more efficiently and profitably. The Malawi's Affordable Inputs Program (AIP) currently combines an economic and a social objective, respectively: (i) increasing agricultural production; and (ii) assisting poor farming households. This policy note explores the […]
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