A maize market report by International Food Policy Research Institute (Ifpri) has shown that Malawi’s maize prices in July 2023 were 104 percent higher than during the corresponding period last year.
The report further shows that Malawians are paying the highest price for the staple food as compared to other countries such as Zambia, South Africa, Zimbabwe, Tanzania and Mozambique in the Southern African region.
According to the report, maize prices jumped by 27 percent from K512 per kilogramme (kg) in June to K650 per kg in July, the steepest monthly increase this year.
Ifpri says traders attributed the surge in price to multiple factors, including fuel scarcity, which led to higher transport costs, impacting overall prices.
- Advertisement -
“Despite the government’s directives on clearance on importation of maize, this in crease may be due to the fact that while most traders remained unaware of this development, those who were aware still incurred additional expenses involved in crossing the border with maize from Zambia and Mozambique,” the report says.
- Advertisement -
It adds that between late June and late July, Chiringa Market in Phalombe District experienced the highest increase in weekly average maize retail prices, with a notable surge of 49 percent.
“This can be attributed to the scarcity of maize in the area, coupled with high demand.
“Conversely, the Northern Region experienced the smallest growth in prices (and even a small decline in Karonga), thanks to harvest being only recently completed there,” the report says.
According to Ifpri, retail prices of maize in selected markets in Malawi remained the highest in the region at the official exchange rate of K1,060 to the United States Dollar.
- Advertisement -
The report says Mozambique has consistently offered the lowest prices compared to Malawi’s neighbouring countries, making it the preferred option to source maize for most traders in Malawi’s Southern Region.
“Moreover, due to the higher maize prices in the Central Region of Malawi compared to Zambia, some Zambian maize traders residing near the border have also favoured Malawi as their selling market of choice,” the report says.
Meanwhile, Agriculture Minister Sam Kawale has said the government is set to start selling maize through the Agricultural Development and Marketing Corporation (Admarc) from Thursday.
Kawale, however, kept a tight lid on the price at which the State-owned grain marketer will make the commodity available to the market.
“Yes, we are targeting cyclone-hit areas and we said we will start Thursday [today]. As we speak, the ministry, through Admarc, is working on logistics, transport and personnel to be ready.
“We might not do all markets in one day but we will start this week. Keep in mind that we also work hand-in-hand with the Treasury for resources but the two ministries [Ministry of Agriculture and Ministry of Finance] are working together. The selling price will be announced soon,” Kawale said.
Sources at the Ministry of Agriculture confided in The Daily Times that the ministry is contemplating to price the grain at around K400 per kg, translating to K20,000 per 50 kg bag.
But Kawale could neither confirm nor deny the reports, saying: “We will communicate”.
Admarc Board Chairperson Zachary Kasomekera Tuesday referred us to the institution’s chief executive officer Dan Makata.
