To encourage production within the sector, Mozambique will increase its budget for agriculture to 10 per cent of the total state budget from four per cent over the next three years. Soares Nhaca, the country’s agriculture minister, said the three-year plan, running between 2009 and 2011 was approved by cabinet and aimed to reduce the current grain deficit.
” We are facing external shocks, there are high fuel and food prices. Therefore, we have decided to increase agriculture budget. Currently, the minister gets only four per cent of the total state budget, this would be increased to 10 per cent in the next three years.” he said.
The state budget for 2008 has been set at $3.5 billion. Despite a bigger harvest, Mozambique will still need to import at least 1.25 million tonnes of maize, wheat and rice this year to cover food shortages caused by flood. The country’s annual grain and cereal imports are normally about 500,000 tonnes, comprising mostly wheat and rice, which are not produced locally, rather than maize.
Nhaca had indicated earlier in the year that the country would increase its grain harvest to 2.6 million tonnes by August despite two cyclones and floods this season.
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