As maize prices continue to declinle, traders are cashing in by buying the staple grain at below government-set minimum price of K650 per kilogramme (kg) or K32 500 per 50kg bag.

Published data from International Food Policy Research Institute (Ifpri) indicates that new maize declined by an average of two percent by end April to K577 per kg or K28 850 per 50kg bag, with Chitipa in the Northern Region recording the lowest new maize price at K421 per kg or K21 050 per 50kg bag in the last week of the month.

In an interview yesterday, Grain Traders Association of Malawi president Grace Mijiga Mhango confirmed that some traders are buying maize at below recommended minimum prices in some markets, but said most of it is imported.

She said: “Much of the maize being found on the produce market in the South is coming from Mozambique while much of the maize from the North is coming from Tanzania.

“Internally, there is no serious maize buying and we are monitoring the situation.”

Mhango said while traders are cashing in on the cheap maize, they are mindful that buying maize with high moisture content could result in reduced stock and high purchasing costs.

Ifpri data shows that by the end of April, new maize was retailing below the minimum farm-gate price across the Northern and Central regions and in seven of the 15 monitored markets in the Southern Region.

Compared to other regions, the Southern Region had the highest monthly average prices of both old and new maize, with old maize averaging K774 per kg in the South while new maize averaged K643 per kg.

Consumers Association of Malawi executive director John Kapito said in an interview yesterday that the decline is minimal considering that maize prices had escalated to record highs in recent months, peaking to K1 200 per kg or K60 000 per 50kg.

“The decline is very minimal if we are to match with incomes of majority of Malawians and the high cost of living,” he said.

As part of the food component, maize contributes about 53.7 percent to the consumer price index, which means any movement in the price of maize has a direct bearing on consumers.

In recent months, pressure on prices has eased, thanks to declining maize prices.

National Statistical Office data shows that headline inflation rate has eased from 34.5 percent in December 2023 to 31.8 percent in March 2024, with food inflation declining to 38.8 percent in March 2024 from 43.5 percent in December 2023.

Similarly, non-food inflation dropped to 22.2 percent in March 2024 from 22.8 percent in December 2023.

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