FUM faults NFRA maize buying price at k95/kg

Farmers Union of Malawi (FUM) has faulted government for deciding to buy maize from farmers, through the National Food Reserve Agency (NFRA) at 95 per kilogramme (kg).

FUM chief executive officer Prince Kapondamgaga, at a news conference in Lilongwe this week, said considering market forces of demand and supply, the K95 per kg price has fuelled the hoarding of the staple grain as most farmers are not releasing their stocks onto the market.

Recently, government, through NFRA, opened up tenders for supply of maize at K95 000 per one metric tonne (1 000 kg), which translates into K95 per kg.

Kapondamgaga said currently, the average maize price on the market is K125 per kg, which is K30 above the price NFRA wants to buy from farmers.

“This price has prohibited maize supply by local farmers and traders are aware that the prevailing market price is higher than the K95 per kilogramme and now averages K215 per kilogramme,” he said.

Currently, there is a decline in maize production due to floods and drought that affected some parts of the country in January this year.

The second round of crop estimates by the Ministry of Agriculture, Irrigation and Water Development shows that the country will experience a 27 percent decline in maize output.

“Therefore, it does not make any good business sense for a farmer to sell maize to NFRA at a delivered price of K95 per kilogramme,” said Kapondamgaga.

He said as a way forward, government has to revive the grain marketing advisory council, which would comprise government and non-State actors, to advise government on national food security and risk management.

“This should be of urgency and shall ensure government has enough information on the availability of the maize situation and this will also help government to easily communicate to different players in the agriculture value chain,” said Kapondamgaga.

He said the council will also help in collective decision-making by various stakeholders in the agriculture sector, which he said will help government make informed decisions on critical aspects such as maize pricing.

Officials from the Ministry of Agriculture, Irrigation and Water Development could not be drawn to comment on the concerns raised by FUM.

Maize is the country’s staple grain and most Malawians believe without it, there is no food.