By JUDITH NAMUTOWE –

A LUSAKA-based economist, John Kasanga, has predicted drastic reduction in the production of wheat and other irrigated crops this year due to various challenges Zambia is facing.
The challenges include high production costs, poor rainfall and power deficits.
Mr Kasanga, who is Independent Management Consulting Services Limited  director, estimated that the country was likely to record reduction in wheat and other irrigated crops because of high production costs.
“There are a number of economic challenges among them high interest rates, the high cost of production, as well as power deficit.
“We are heading into the winter season when winter crops are planted. I am estimating that we are likely to record reduction in wheat and other irrigated crops this year,” Mr Kasanga said.
He said in an interview that this was so because almost all farmers borrow from banks to finance their winter crops.
Mr Kasanga said not many farmers would borrow at the current high interest rates and be able to repay the loans.
“At over 40 per cent increase, how many farmers will manage to repay? It is a situation which we must all be concerned about because it is a national issue,” he said.
Mr Kasanga does not expect growth in the Small and Medium Enterprises sector with the current situation.
He said interest rates were high, a situation which results in reduced demand for goods because people cannot afford.