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Page added on June 27, 2008

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Food crisis forces Africa farm aid rethink

Farmers in many African states face an uphill struggle to increase production because they are suffering from higher costs of seeds, fertilisers and fuel.

Some international lenders who normally advocate free markets have begun advocating temporary state subsidies.

“The conventional wisdom is subsidies are a no-no,” Bakri said. “But Malawi has shown it can do it in a smart way…It has achieved bumper crops by subsidising seeds and fertilisers and gone from a situation of receiving food aid to a food surplus.”

Reuters



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