The Agricultural Development and Marketing and Corporation (Admarc) has opened some of its markets across the country, but the price of maize per kilogramme has jumped from K790 or K39 500 per 50 kg to K1 300 or K65 000 per 50kg.
With vendors selling the grain at an average of K60 000 per 50kg bag, and an earlier promise from government that Admarc would be selling at K50 000, consumers and some stakeholders feel the State grain trader is doing a cost-recovery approach rather than social protection.
In an interview on Thursday, Admarc general manager Dan Makata justified the increment, saying they could not have maintained the K790 price because the maize being sold was bought at around K1 300, unlike in the previous years.
Said Makata: “We are targeting areas where the price is between K1300 to K1500 per Kg in areas like Mwanza, Neno and Lower Shire, so that we stabilise the price to K65 000 per 50kg.
“In some places, the price is lower, that’s why we haven’t opened those markets.”
Speaking from Machinga, former Mchiriguza Area Development Committee chairperson Macdonald Wisiki wondered where the cheap maize that government promised is, saying people are struggling.
At Likoma Island, where vendors are selling at K50 000, Damalesi Nyirenda said they prefer maize from vendors than Admarc, saying the State grain trader looks more business-oriented.
She said: “With the K15 000 difference between Admarc and vendors, we are able to go to the maize mill and buy some relish. If vendors are selling at that lower price, why is the Admarc maize more expensive? I thought they all bought maize from the same farmers?”
On his part, Consumers Association of Malawi (Cama) executive director John Kapito said if the country had enough maize, people would have more choices on where to buy.
He said: “I agree that people do not have enough money, but for now, we have to focus on creating availability of the maize on the market.
“Once we have Zambian maize into the country, which the government said will buy, we will be able to have a lot of maize and then we can play around with the prices.”
Agriculture economist Steve Kayira feared the situation will inspire vendors to adjust their prices upwards, arguing that Admarc is unintentionally validating higher prices.
“Late opening of markets is among the reasons Admarc purchases the grains at very high prices, for which it is trying to mark-up. Vendors would increase their prices to match that of Admarc.
“This would trigger chain reactions across other products, deepening nutritional vulnerability in households,” he said.
Centre for Human Rights and Rehabilitation (CHRR) executive director Michael Kaiyatsa agreed, saying this will create a perverse situation where Admarc becomes a price-setter in the wrong direction, deepening rather than easing pressure on households.
Minister of Agriculture, Irrigation and Water Development Roza Fatchi Mbilizi did not respond to our questions on Thursday but in October she said the imports from Zambia would enable the government to sell maize at less than K50 000 per 50 kg.
