Redesigning the Farm Input Subsidy Programme for Malawi

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February 28, 2015 - Flora Nankhuni and Athur Mabiso

Draft of 16 March 2015
Department of Agricultural Planning Services
Ministry of Agriculture, Irrigation, and Water Development

Redesigning the Farm Input Subsidy Programme for Malawi

INTRODUCTION
Since the 2005/06 agricultural season, the Government of Malawi has made the Farm Input Subsidy Programme (FISP) the major pillar of both the country’s agricultural development strategy and its social protection strategy. While the impact of the programme has been mixed, recent empirical evidence supports its continued implementation, albeit, with a number of reforms to enhance its contribution to agricultural and economic growth.

Considering the importance of FISP to national agricultural policy, this note reviews the salient issues that must be considered in redesigning the programme, drawing on recent evaluation literature, preliminary results of the ongoing National Agricultural Policy (NAP) consultations, consultation with MoAIWD staff, and results of the July 2014 FISP symposium that was organized by the Lilongwe University of Agriculture and Natural Resources (LUANAR) and the Malawi Strategy Support Programme of the International Food Policy Research Institute (MaSSP-IFPRI).

Our aim in drafting this note is to identify key lessons learned from FISP implementation so far and to highlight reforms to the programme that could be undertaken to unleash the programme’s full potential for achieving Malawi’s development goals.

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