Malawi: Subsidies not the only answer for Malawi's farmers

The Malawian government's farm input subsidy programme was first implemented in 2005 after several years of drought and chronic food shortages left nearly a quarter of the population in need of food aid. President Bingu wa Mutharika hoped to avoid the need for future food handouts by distributing coupons for maize seed and fertilizer to the poorest 50 per cent of farmers. But the cost of fertilizer and transporting it to farmers all over the country has risen steeply in recent years and by 2008/09 the programme was draining 16 per cent of the national budget and nearly 7 per cent of GDP.