A monthly maize market report developed by International Food Policy Research Institute (Ifpri) Malawi has indicated that maize prices have decreased by 7 percent for maize harvested last year and 2 percent for newly harvested maize.
The researchers conducted the survey in April.
The drop in prices has been attributed to the availability of newly harvested maize, which the report says has flooded markets across all the regions of the country.
“In April, maize prices continued their downward [trajectory] as newly harvested maize increased supply. The weekly average price of maize declined by 7 percent from K760 per kg [kilogramme] in the final week of March to K709 per kg in the final week of April for old maize.
“During the same period, the weekly average price of new maize dropped by 2 percent from K612 per kg to K597 per kg–below the minimum farmgate price set by the government at K650 per kg,” the report reads.
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The report says compared to Central and Northern regions, the Southern Region had the highest monthly average prices of both old and new maize.
“Old maize averaged K774 per kg in the South[ern Region] while new maize averaged K643 per kg. By the end of April, new maize was retailing below the minimum farm gate price in seven of the 15 monitored markets in the Southern Region and in all monitored markets in the Central and Northern regions,” the report reads.
The report says the Northern Region usually records the lowest prices but that, this time around, the Central Region saw old maize prices decline below those in the Northern Region towards the end of April.
This unusual trend could be attributed to traders clearing out old stock to make way for the influx of new maize in the region, leading to the discounted price, the report notes.
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“Prices of new maize followed the normal pattern, with Chitipa in the North[ern Region] recording the lowest new maize price at K421 per kg in the last week of the month,” the report reads.
Earlier, State produce trader Agricultural Development and Marketing Corporation (Admarc) said it would start buying maize at its depots in the Southern Region this month.
Admarc said it had set aside K22 billion for the procurement of 33,846 metric tonnes (mt) of maize at K650 per kg and other crops, including soya beans, rice and beans.
Recently, Agriculture Minister Sam Kawale said the government further expects about 35,000mt of maize to be realised from 200 mega farms it has supported in the 2023-24 growing season.
On the other hand, National Food Reserve Agency (NFRA) said its markets are ready to buy maize from commercial farmers, who are under the Mega Farms Programme.
Similarly, NFRA was given K22 billion for maize purchases and expects to buy 82,000mt.
