Malawi budget row could hurt food security - minister

If Malawi's $1.2 billion budget is not passed this month it could delay the roll-out of a fertiliser subsidy crucial to boosting food production, Finance Minister Goodall Gondwe said on Wednesday.

Malawi, hit by frequent food shortages, introduced the seed and fertiliser programme in 2005. It helped raise output of the staple maize to an estimated 3.2 million tonnes in 2006/07 -- the biggest crop in a decade.

Two seasons ago, Malawi only produced 1.25 million tonnes of maize, nearly two million short of national demand and its worst harvest since 1992.

"Government needs to start purchasing fertiliser for the programme now in readiness for the growing season and we have to pay 6 million kwacha (about $43,000) up front," Gondwe told Reuters

He added that funds weren't available because parliament only approved $8 million to spend for a month until the budget is passed.

Gondwe had asked for $32 million to keep the government running for four months after approval of the national budget was delayed to allow for mourning for the late first lady.

"There is need for an urgent alternative to avert the emerging crisis because the fertiliser is expected to start flowing into the country in two months time," he said.

The opposition has been boycotting debate on the budget, demanding the Speaker sack 41 members who joined President Bingu wa Mutharika's breakaway Democratic Progressive Party (DPP).

Gondwe feared that the dispute could lead to further postponements.