Minister of Trade and Industry Simplex Chithyola Banda has said a deal to supply 100,000 metric tonnes (mt) of soya beans to Tanzania remains intact and that local traders will make the most of the market in the neighbouring country.
Banda said discussions are at an advanced stage towards ironing out price disparities between Malawi and Tanzania.
Tanzania authorities committed to have traders in the country purchase the commodity from Malawi last season but the local traders were yet to start benefitting from the deal.
But in an interview yesterday, Chithyola Banda said prospects to increase Malawi’s exports are high as more export opportunities are unfolding, hence re-negotiating existing memoranda of understanding (MoU) with the government of India on pigeon peas and China on commodities such as soya and groundnuts.
“For the Tanzania deal, we had challenges in farm gate prices so we are still negotiating as they are still interested in getting our soya.
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“Malawi now has unlimited access for exports of pigeon peas for the next two years to India. It is up to us as to how much forex we can generate from that market. We are also negotiating an MoU with the India government to enhance exports of soya beans,” Banda said.
This comes as the World Bank, in its latest Malawi Economic Monitor, said, with this year’s minimum farm gate prices, it may make it difficult for Malawian producers and products to be internationally competitive.
It said the minimum farmgate prices announced are, in many cases, higher than international prices.
The World Bank warned that enforcing such high minimum farm gate prices encourages imports and favours traders who are inclined to ignore mandated minimum prices,” the report reads.
