Maize prices have persistently risen in the past five years, Famine Early Warning Systems Network indicates.
According to a market report released on August 1 2023, prices of food rose from 5 to 50 percent between May and June this year.
However, food prices in Mangochi, Balaka and Phalombe remained generally stable, and prices at Jenda and Mzuzu declined by about 10 and 20 percent, respectively, following seasonal trends.
Regardless of the month-on-month decline, the report says, at Jenda and in Mzuzu maize prices remained high at K520 per kilogramme (kg) and K700 per kg, respectively.
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“These prices are 55 to 250 percent higher than the previous year’s prices and 150 to 360 percent above the five-year average. Overall, high maize prices have the most significant impact on poor households in southern Malawi, as they lost most of their own crops, which were ready for harvest, during Tropical Cyclone Freddy and have few sources of income with which to purchase food,” the report reads.
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According to the analysis, Malawi continues to face a foreign currency shortage, largely due to the country’s low sources of export revenue.
Recently, the Reserve Bank of Malawi reported that current foreign exchange reserves cover less than one month’s worth of imports, which falls below the International Monetary Fund threshold of a minimum of three months.
Consequently, the shortages have led to elevated prices and scarcity of imported goods, including fuel, adding more pressure on food prices and contributing to reduced access to food.
Further, the report indicates that most people in the Southern Region and Karonga in the Norther Region are expected to continue experiencing higher levels of food insecurity.
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Earlier projections indicate that prices of maize are expected to increase in the coming months, with most districts in the Southern Region likely to exceed K1,000 per kg.
In the long run, Centre for Social Concern Project Officer responsible for Social Conditions Research Programme Kondwani Hara said maize prices could be slowed down by, among other strategies, increasing agriculture productivity.
“You see, when the cost of living increases, one of the factors that contribute to that is the increase in maize prices. So, to improve productivity, the government can provide subsidies, access to better seed, fertilisers and irrigation facilities to farmers,” he said.
To salvage the situation, the government recently relaxed some maize importation procedures to ensure that the market has enough maize.
Recently, Agriculture Minister Sam Kawale said the government will use the 68,420 metric tonnes (mt) and 15,960mt of maize kept by the National Food Reserve Agency and Agricultural Development And Marketing Corporation, respectively, to support food insufficient households.
Kawale further said the government will procure about 42,000mt of additional maize for the Strategic Grain Reserves using the K12 billion in the national budget, the Contingency Emergency Response Component through the Agricultural Commercialisation Project as well as African Risk Capacity Insurance payout funds.
Ministry of Agriculture final Crop Production Estimates Survey indicates that maize production has decreased by 5.6 percent in the 2022-23 farming season, from 3.7mt to 3.5 million mt.
