The retail price of maize increased by 32 percent in February, a factor an International Food Policy Research Institute (Ifpri) report has partly attributed to the depreciation of the Kwacha on the informal market.
The report, which was released on Tuesday this week, indicates that unlike the usual February decline trend observed in the past two years—when prices fell by 12 percent in 2024 and 1 percent in 2023— maize retail prices took a sharp rise.
During February this year, the report says, the price of maize increased by 32 percent from an average of K1,304 per kilogramme (kg) in the last week of January to an average of K1,718 per kg in the last week of February.
The report attributes the sharp rise to a poor 2024 harvest, which it says has reduced domestic maize supply levels, forcing the country to rely heavily on imports, primarily from Tanzania.
- Advertisement -
“Import dependence, coupled with ongoing foreign currency shortages, has created significant price pressures. The sharp decline in [the] Malawi Kwacha’s value on the unofficial exchange market—from K3,700 to the United States (US) dollar at the end of January to K4,900 to the US dollar at the end of February—has significantly contributed to the increase in the price of maize,” the report reads.
- Advertisement -
According to the report, due to transportation and other transaction costs, the commodity gains value as it moves southwards.
It says, as such, prices were recorded to be the lowest in the Northern Region, selling at an average of K1,418 per kg in the last week of February.
The grain was highest in the Southern Region, where it was selling at an average price of K1,806 per kg in the same period, translating to K90,300 per 50kg bag.
Currently, the state grain trader, Agricultural Development and Marketing Corporation (Admarc), is selling maize at K790 per kg or K39 500 for a 50kg bag.
- Advertisement -
Our spot checks in various markets in the country show that the price of the commodity continues to rise.
In Mzimba and Mzuzu, the grain is currently selling at K75,000 per 50kg bag and K70,000 per kg in Balaka.
However, according to the report, retail prices of maize in Malawi were similar to those in Zambia and Mozambique, but lower than in Zimbabwe.
Commenting on the report, Centre for Social Concern Project Officer Kondwani Hara said the country needed to promote food diversification to reduce overreliance on maize, which he said was vulnerable to shocks.
Hara said apart from promoting irrigation, farmers should be encouraged to adopt climate resilient agriculture practices such as planting drought-tolerant crops.
“The other thing is about strengthening strategic grain reserves so that the National Food Reserve Agency [NFRA] is well stocked and managed. This will ensure enough maize on the market for lean periods like these,” he said.
Recently, NFRA procured 20,000 metric tonnes of maize from Tanzania to ensure the volatile supply of maize in the country is stabilised.
Earlier, Agriculture Minister Sam Kawale said they would continue to issue import permits to everyone willing to import maize with the aim of flooding markets, which will see prices stabilising or even going down.
