The International Food Policy Research Institute (Ifpri) says Malawian maize traders have started informally importing the staple grain from Mozambique to meet the local demand as the new maize on the local market is fast diminishing.

Ifpri data shows that in the neighbouring Mozambique, a 50 kilogramme (kg) bag of maize is fetching between K12 000 and K18 000 while on the local market, the price is at between K20 650 and K29 000.

The data further shows that maize prices are the highest in the Southern Region at K496 per kg or K24 800 per 50 kg bag while in the Central Region, the same is selling at K465 per kg or K23 250 per 50 kg and in the Northern Region, the grain is fetching K430 per kg, translating to K21 500 per 50 kg bag.

During the review period, maize price was the highest in Mangochi in the Southern Region at K580 per kg or K29 000 per 50 kg bag.

Reads the report in part: “The scarcity of maize stocks in Mangochi partly caused by a poor harvest, has contributed to the escalating price of maize. Consequently, traders are now acquiring stocks from Mozambique.

“This means that most farmers who have sold maize during this harvest season have done so below the government-mandated price.”

Meanwhile, Agricultural Development and Marketing Corporation (Admarc) sales were reported in 10 out of 26 markets monitored by Ifpri, with the grain selling at K300 per kg or K15 000 per 50 kg bag.

Speaking in an interview yesterday, Farmers Union of Malawi chief executive officer Jacob Nyirongo said the scenario exposes government’s policy contradiction.

He said: “The Ministry of Agriculture published K500 per kg as minimum farm-gate price for maize and it is contradictory for the Ministry of Agriculture to allow Admarc to be selling maize at K300 per kg at a time we had expected Admarc to be buying maize from farmers at the prescribed minimum farm-gate price.” 

Grain Traders Association of Malawi president Grace Mijiga Mhango in an interview yesterday confirmed that traders have turned to Mozambique because of the cheaper prices being offered there and its maize has the right moisture content.

She said: “What is happening is that people expected traders to be buying the maize at minimum prices, but the maize is not of the right moisture quantity and if we factor in transport costs, it is not making business sense.”

Minister of Agriculture Sam Kawale onfirmed that Admarc was yet to be funded to buy maize, arguing that the grain’s moisture content is still high.

The Famine Early Warning Systems Network has since projected that the national maize output will about 20 to 30 percent below average due to lower use of fertilisers and the impact Cyclone Freddy, which hit the Southern Region.

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