Admarc’s absence on the market has exposed maize farmers to unscrupulous traders who are buying the staple grain at 40 percent below the minimum farm gate price.

Spot checks Nation on Sunday conducted across the country’s markets found that many traders are buying maize at between K300 and K400 per kilogramme (kg) instead of the government’s recommended price of K500 per kg.

A farmer sells
her maize at
Bereu in Chikwawa

In separate interviews, experts and the Parliamentary Committee on Agriculture attributed the problem to lack of a legal framework to enforce the prices and Agricultural Development and Marketing Corporation’s (Admarc) delays to open its markets.

Admarc acts as a price stabiliser as it adheres to the recommended prices, but its absence on the market has forced farmers to sell their produce to private traders at low prices.

“Since we desperately need money, we are selling our maize below the recommended price of K500. This means it may not be easy for us to recover money we invested in maize farming,” complained Gift Nazombe from Traditional Authority Jenala in Phalombe District.

On the day of the interview, he had sold four tonnes of grain at K350 per kg.

Dressed in a khaki shirt, blue jean trousers and black shoes, Nazombe said if Admarc markets were opened, he would have made more money.

Maria Massa, from Chikwawa District, made similar sentiments.

“I urgently needed money to meet family obligations. So, I had no choice but to dispose of some maize to traders,” she said.

Unlike Nazombe, Massa sold her maize at K400 per kg.

At Chikuli in Traditional Authority Kunthembwe, Blantyre, Jonathan Dzinkambani and other farmers are selling their maize at K400 per kg.

He claimed that farmers in the area agreed not to sell their maize at less than K400 per kg.

In Ntcheu District, farmers are selling their grain at K400 per kg.

On a good day, Andrew Milanzi said they sell their maize at K450 per kg.

“At least, K450 per kg gives hope that a farmer can make some profit,” he said.

At Mitundu in Lilongwe, farmers Maness Banda and Enipher Phiri said maize is selling at between K350 and K400 per kg.

Aaron Nhlane, a Mzuzu-based farmer, painted a similar picture.

“A 50kg bag of maize is selling at K17 500 and K20 000 in the city, meaning farmers are selling their grain at between K350 and K400 per kg,” he said.

Asked why Admarc is yet to open its markets, the parastatal’s spokesperson Agness Chikoko said they are yet to be funded.

She said: “A directive and funding for maize purchases come from the Ministry of Agriculture. To date, we are yet to receive funding and a directive to purchase maize.”

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

He pledged that Admarc will soon be funded to buy the grain.

The minister could not say what they are doing to protect farmers from unscrupulous traders.

Parliamentary Committee on Agriculture chairperson Sameer Suleman described lack of political will as a challenge.

 Besides, he said government lacks a legal framework to enforce its prices.

Suleman said: “Mind you, Malawi is a liberalised economy and there is no law restricting people how they should conduct business. This is why we need Admarc to stabilise prices on the market.

“If we delay further, will poor farmers—who desperately need money—continue waiting for Admarc to open its markets?”

He urged Admarc and the National Food Reserve Agency (NFRA) to start buying maize from farmers.

Suleman raised concerned that although Parliament approved K12 billion to be split into halves by Admarc and NFRA for maize purchases, nothing seems to have been done.

Agriculture policy expert Tamani Nkhono Mvula said farmers are in a fix as they do not have an alternative market.

“So, if a trader offers them anything, they will accept,” he said.

Nkhono Mvula said the only way to enforce the minimum prices is to ensure that Admarc opens its markets on time.

The expert, who is also one of the board of directors of the parastatal, cast doubts if Admarc will be effective this year considering numerous challenges it faces.

“Probably next year Admarc will compete on equal footing with other traders,” said Tamani Nkhono.

Farmers Union of Malawi chief executive officer Jacob Nyirongo also expressed disappointment at Admarc’s delays to open its markets.

He said it is the traders not farmers who benefit when Admarc markets open late.

“By the time Admarc gets money, most farmers would have already sold their maize to traders.

“This shows government’s lack of commitment in ensuring that farmers access markets,” said Nyirongo.

National Police deputy spokesperson Harry Namwaza said they have arrested some traders for buying maize below the minimum price.

He, however, could not say how many have been nabbed.

Government, through the Ministry of Agriculture, sets minimum farm gate for maize, beans, cassava, rice, groundnuts and other crops.

The aim is to protect farmers from unscrupulous traders. But a November 2020 assessment by the Agriculture Policy Research Africa faulted the government for failing to enforce the prices.

According to the assessment, government’s laxity led to huge losses on the part of farmers.

A similar observation was made by the International Food Policy Research Institute in August 2020 in its assessment paper titled ‘Can a maize price band work in Malawi’.

In the paper, the institute highlighted that for over 12 years, the government has failed to enforce the minimum farm gate prices it sets.

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