Zambia : commodity financing - standard procedure

The CIP will fund agricultural imports, especially fertilizer. The GRZ will undertake several measures to support these objectives, including: increasing prices paid to farmers and traders to allow a fair profit margin on agricultural products; reducing subsidies on fertilizers sold to farmers until fertilizer prices reach parity with the price of imported fertilizer; increasing food prices paid by millers to a level which covers costs and a fair profit; and conducting a series of reviews, studies, and analyses that address critical agriculture issues and can help guide GRZ policies. Local currency will be jointly programmed for improvement of the agriculture infrastructure, local currency costs of certain studies, and analyses, and the improvement of agricultural management.