Government releases K5 billion to Admarc out of K60 billion budget

The State produce trader Admarc will begin buying maize at its depots nationwide from tomorrow, but with only K5 billion of the K60 billion budgeted for the season so far released, its purchasing power remains limited.

Agricultural Development and Marketing Corporation (Admarc) chief executive officer Ben Botolo announced on Friday that the corporation will buy maize at K900 per kilogramme, the government‑approved price.

He urged farmers to sell through official depots to benefit from fair and competitive pricing.

“The company has put in place the necessary logistical arrangements to facilitate smooth and transparent purchasing operations during the 2026/2027 marketing season.

“Farmers are further advised to bring properly dried and clean maize that meets the required quality standards. Admarc remains committed to serving Malawians by providing reliable agricultural markets and contributing to national food security,” the statement reads.

In a follow‑up interview, Admarc spokesperson Theresa Chapulapula confirmed that the K5 billion tranche is the first financing disbursement for maize purchases.

 She said Admarc aims to buy 65 000 metric tonnes of maize during the 2026/27 financial year, but continuity will depend on further releases.

Reacting to the announcement, Grain Traders Association of Malawi president Grace Mijiga‑Mhango said Admarc’s entry offers farmers a competitive market but expressed concern about continuity in purchases.

“The resources allocated are too little for the government agency to purchase maize on the market. Coming at a time when its entry into the market was expected earlier, we hope it will quickly mobilise additional resources and continue buying the commodity so that farmers are not exploited,” Mijiga‑Mhango said.

director of the Centre for Agriculture Research and Development at Lilongwe University of Agriculture and Natural Resources Innocent Pangapanga said although Admarc was expected to enter the market as early as April, the disbursement of K5 billion is a positive step.

He said the intervention will help protect farmers from exploitative vendors who are currently buying maize at prices as low as K600 per kilogramme, well below the officially gazetted minimum farm‑gate price, and urged government to release the full allocation to ensure meaningful impact.

“Given the looming threat of the upcoming 2026/27 El Niño and the heightened risk of food insecurity, the government should urgently scale up financing to both Admarc and the National Food Reserve Agency (NFRA) to aggressively procure maize, support farmer incomes, stabilise markets and rebuild the Strategic Grain Reserve (SGR) before supply conditions deteriorate,” Pangapanga said.

Agriculture policy expert Leonard Chimwaza said Admarc’s market entry will bring price stability and competition, noting that non‑adherence to minimum farm‑gate prices had become prevalent in commodity markets.

He said farmers expect uninterrupted purchases at all depots, corruption‑free processes, and greater access to Admarc markets for small‑scale farmers.

“Many vendors were offering low prices across commodity markets in Malawi. Therefore, the entry of a competitor offering prices above the minimum farm‑gate price is a positive development. For producers, this is good news because it guarantees better prices,” Chimwaza said.

Mwapata Institute executive director   William Chadza agreed that Admarc’s entry is late given the time since farmers began harvesting.

He hoped Admarc would have a steady cash flow to manage purchases.

In March, Admarc general manager Ben Botolo told Nation on Sunday the institution would require K144 billion to operate efficiently during the 2026/2027 fiscal year.

With only K60 billion allocated in the budget, Botolo said Admarc would need to seek K80 billion in short‑term local and trade financing from banks, incurring interest costs of about K10 billion.

He appealed for a bailout to settle loans obtained from CDH Bank amounting to K39.5 billion, which he said hinder the institution’s ability to access financing.

Botolo also said in the last financial year Admarc was allocated K53.7 billion but received only K5.5 billion, slightly over 10 percent of the allocation.

Of that, K2.5 billion was disbursed in February 2026, resulting in reduced commodity purchases and a delayed market entry.

Admarc was created in 1971 as a statutory corporation mandated to market agricultural produce and inputs, facilitate development of the smallholder agricultural subsector and fulfil social obligations on behalf of government.

Until 1987 Admarc was the sole buyer of smallholder produce; in 2004 it was incorporated as a limited‑liability company with government owning 99 percent of the shares.