Retail prices of maize declined by an average of 25 percent in March owing to newly harvested maize on the market, an International Food Policy Research Institute (Ifpri) maize market report indicates.
According to the report, the depreciation of the Malawi Kwacha against neighbouring currencies at the informal exchange rates used for most cross-border maize trade slowed down in March, which further eased pressure on prices.
The decline follows a sharp rise in the commodity over the last four months, reaching a record-breaking national average of K1,743 per kilogramme (kg) and a maximum of K1,933 per kg in districts such as Zomba.
Despite the late onset of the rainy season, maize harvest started early this year, with new maize hitting markets in early March in the Southern Region.
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“Some farmers may have planted early-maturing varieties, but many harvested their crop prematurely to alleviate liquidity constraints or to pre-empt theft.
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“The supply of maize was boosted by cheap imports from parts of neighbouring Mozambique, where the harvest had also started. Consequently, the Southern Region experienced a steeper price decline than the rest of the country,” the report reads.
According to the report, in the final week of March, maize was retailing at an average price of K1,332 per kg, down from K1,807 per kg in the final week of February in the region.
Further, the report notes that in the Central Region, prices dropped from K1,739 per kg at the end of February to K1,308 per kg at the end of March on average.
The Northern Region recorded the smallest price decline but continued to report the lowest maize prices nationally, averaging K1,144 per kg by the end of March, the report indicates.
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In a recent interview, economist Marvin Banda said food inflation is expected to ease in the next four months owing to the new harvest.
The report comes at a time when the Ministry of Agriculture released farmgate prices earlier this month, with maize set at K1,050 per kg, representing about a 62 percent increase from last year’s K650 per kg.
The Ministry of Agriculture’s second crop estimates show that Malawi will have a maize deficit of 537,380 metric tonnes this year.
