Centre for Democracy and Economic Development Initiatives (Cdedi) has questioned Treasury’s delay to release funds for maize procurement for Agricultural Development and Marketing Corporation (Admarc) despite Parliament passing the 2026 National Budget last month.
In a letter addressed to the Secretary to Treasury Cliff Chiunda, Cdedi said the delay was undermining government’s campaign promise to strengthen the State grain trader and protect farmers from exploitative private traders.
The watchdog has reminded Treasury that the ruling Democratic Progressive Party (DPP) pledged in its manifesto to transform Admarc and make it capable of stabilising maize prices while ensuring fair returns for farmers.
On the other hand, Cdedi reminded Treasury that the party promised that the National Strategic Grain Reserves would be stocked with the staple grain at any given point in time.
“Cdedi, therefore, feels duty-bound to write you, Sir, requesting for an explanation on why Admarc is yet to receive funds for the procurement of maize, in line with the above campaign promise, despite the National Budget being passed in April 2026,” reads part of the letter signed by Cdedi executive director Sylvester Namiwa.
Cdedi argued that Treasury should have immediately released resources once the Ministry of Agriculture announced farm gate prices.
Cdedi further observed that continued delays could force the country to import maize again, a development it describes as “embarrassing for an agro-based economy already struggling with foreign currency shortages”.
Chiunda was not available yesterday when contacted but agriculturalist Hastings Sonjo, in an interview, backed Cdedi, arguing that it was important for government to explain because delayed procurement could directly affect food security.
“When Treasury delays releasing funds, farmers are forced to sell maize cheaply to private traders who often buy in bulk and later resell at higher prices.
“This weakens government’s ability to control prices and protect vulnerable households from hunger. An explanation would also promote transparency and accountability since Parliament already approved the funds,” Sonjo explained.
On reforming Admarc, Sonjo said it was beneficial as a stronger institution could reduce dependence on foreign maize imports, which drain scarce foreign exchange reserves.
On page 26 of its manifesto, the DPP promises to reform Admarc into a fully-functional commercial entity with both local and international market linkages and also ensure the Malawi Strategic Grain Reserves has stock of not less than 150 000 metric tonnes at any given point in time.
During the 2026/2027 fiscal year, Parliament allocated only K60 billion in the National Budget, which according to Admarc chief executive officer Ben Botolo, will force the corporation to seek short‑term local and trade financing of K80 billion, incurring interest costs of about K10 billion.
This was against what Botolo told a Parliamentary Cluster Committee on Agriculture and Food Security and Natural Resources, Energy and Climate Change in March in Lilongwe, the corporation required K144 billion to operate efficiently and get restored in the 2026/2027 fiscal year.
