National Food Reserve Agency (NFRA) has bought 26 663 metric tonnes (MT) of maize against its 108 000MT target amid demands for higher prices for the grain from traders.
NFRA chief executive officer Bruce Munthali in an interview yesterday said the agency has spent K23.99 billion on the maize purchased so far.
He said 20 058MT was bought through its Kanengo Depot in Lilongwe, 3 410MT at Kazomba Depot in Mzimba, 2 283MT in Mzuzu, 741MT in Karonga and 171MT in Mangochi.
Munthali said the agency is yet to buy maize at its depot in Limbe, Blantyre, Bangula in Nsanje and Luchenza in Thyolo.
“Competition from other players, particularly vendors and agro-dealers in terms of pricing is a big challenge. However, our markets are open and we are looking into the challenges so that we can beef up our stocks,” he said.
NFRA is targeting to have 108 000MT procured by October, before the onset of the rains, at a buying price of K900 per kilogramme (kg).
Munthali said the agency will preposition maize from depots with adequate stocks to areas facing shortages, particularly in the Southern Region.
On funding, he said NFRA is accessing a second K20 billion tranche of the K100 billion government allocation for the procurement exercise.
In July, the agency contracted 185 suppliers but Munthali said some are yet to meet contract obligations.
In a separate interview, Grain Traders Association of Malawi president Grace Mijiga-Mhango said traders have maize but the prices being offered remains a challenge.
She said K1 000 per kilogramme (kg) would be a reasonable buying price and also urged NFRA to review its supplier arrangements, alleging that some contracted suppliers could be speculators rather than maize traders.
Agriculture expert Leonard Chimwaza said NFRA entered the market late and its K900 per kg price is below prevailing market prices.
He said maize is selling for as much as K50 000 per 50kg bag, compared with NFRA’s equivalent price of K45 000.
“For the agency to hit the intended target, it should raise the price to compete with other players on the market,” said Chimwaza.
As of July 21, NFRA reported holding about 62 000MT of maize. If it achieves the 108 000MT procurement target, its stocks would rise to about 170 000MT, which is still 47 000MT below the estimated annual national requirement of 217 000MT.
The procurement comes as Malawi seeks to strengthen its strategic grain reserves ahead of a forecast El Niño weather pattern.
