By Benadetta Chiwanda Mia:
The National Food Reserve Agency (NFRA) has initiated an agreement with its Tanzanian counterpart to supply 20,000 metric tonnes (mt) of maize, a move aimed at stabilising the volatile supply within the country.
The development comes amidst escalating maize prices, which have surged to as high as K100,000 per 50kg bag in some markets.
In an interview, NFRA Chief Executive Officer George Macheka said the agency has signed a government-to-government agreement with
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Tanzania to acquire the much-needed stocks.
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Macheka highlighted that the NFRA currently has over 25,000 metric tons in reserve, equivalent to around 1,110 truckloads, ready for distribution.
“Recognizing the depletion in our reserves, we engaged our Tanzanian counterparts and signed an agreement for 20,000 MT. We anticipate the first consignment of 9,400 MT to arrive within this and next week, which will boost our stock to over 45,000 MT,” Macheka said.
Macheka also revealed that, to date, the strategic grain reserve committee has released 20,000 metric tons to Admarc for market distribution.
“We stock maize and we release it to two main institutions: Dodma and Admarc. Dodma focuses on free distribution to hunger-stricken families, while Admarc is responsible for price stabilization by selling in various outlets,” he said.
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Part of the incoming consignment from Tanzania will also be allocated to Admarc to help mitigate rising local market prices.
Previously, the NFRA had engaged local farmers for irrigation farming with the intention to procure around 4,000mt of maize.
From this initiative, Macheka noted that only 1,100mt will be acquired.
“We were aiming for 4,000 MT from the irrigated crops, but available stock stands at 1,136 MT. Next season, we aim to contract these farmers from planting to harvest, we want to build a closer relationship and ensuring they are given resources to sell their produce to us,” Macheka added.
Meanwhile, Consumers Association of Malawi Executive Director, John Kapito, has attributed the maize price spike not only to supply shortages but also to deliberate market manipulation by traders.
“Maize prices remain high because we’ve dismantled cushioning mechanisms like Admarc, which traditionally helped stabilize prices. Traders are now hoarding supplies and releasing them when it suits them,” Kapito said.
Kapito emphasized the importance of addressing supply-demand imbalances to prevent further price hikes.
““Demand and supply are issues that we have failed to balance. We knew as early as March 2024 that increased supply would be needed during the lean period, yet no action was taken. Scarcity creates higher prices and panic,” he said
Malawi requires approximately 3.1 million tonnes of maize annually to ensure food security.
However, the 2023-24 agricultural season was affected by El Niño weather conditions, resulting in below-average yields and affecting nearly 5 million people.
Looking forward, Malawi anticipates a better agricultural season in 2024-25, owed to good rains, which could boost economic growth prospects, projected at 4 percent for 2025.
