Centre for Social Concern (CfSC) has warned that the minimum farm-gate prices set by the Ministry of Agriculture will be meaningless if government does not provide timely access to profitable markets such as Agricultural Development and Marketing Corporation (Admarc).

CfSC executive director James Ngahy lamented that government’s delays to open Admarc markets has opened room for vendors to buy commodities at below minimum prices, leaving farmers vulnerable to unscrupulous traders.

People queue to buy maize at
an Admarc depot

“Our research this year reveals that smallholder farmers in some parts of the Southern Region are selling a 50 kilogramme [kg] bag of maize at about K15 000 instead of K25 000 set by the government.

“On the other hand, soya beans are being sold at K20 000 per 50kg bag instead of the government recommended price of about K40 000. This could make it hard for farmers to buy farm inputs next growing season.”

He said the development could also lead to reduced yields next growing season and increased food insecurity.

Over the years, farmers have complained of exploitation from some traders despite government setting minimum buying prices for the various agriculture commodities to protect farmers from abuse.

In an interview on Sunday, National Smallholder Farmers Association of Malawi chief executive officer Bettie Chinyamunyamu admitted that out of desperation, some farmers are selling their produce below minimum prices.

“Government has a responsibility to ensure that there is adherence to the minimum prices and the most successful way to do that is to defend that price by capacitating Admarc to buy at that price,” she said.

Chinyamunyamu said minimum prices should be set at the right level in line with market trends within the region.

“When minimum prices are set too high, formal private traders may be discouraged from participating on the market, leaving only informal traders who end up buying not only below the minimum price, but even below cost of production,” she said.

This year, government raised farm-gate prices with maize to K500 per kg from K250 last season.

The new prices also pushed polished rice to about K1 000 per kg, soya beans is pegged at K800 per kg, pigeon peas at K550 per kg, pure beans at K700 per kg and cotton at K580 per kg. The farm-gate prices are based on the cost of production, market forces and price trends for the previous years and the need to provide incentives to growers, according to the Ministry of Agriculture.

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