CisaNet sounds alarm on rising food prices
Civil Society Agriculture Network (CisaNet) says escalating maize prices in the country may drive Malawi to the brink of the worst food crisis in recent times.
In a statement yesterday made available to The Nation, CisaNet board chairperson Herbert Chagona said amid such an impending food crisis, a strong and vibrant Agricultural Development and Marketing Corporation (Admarc) remains key.
He said: “CisaNet has noted with great concern the frustrations registered in many households across Malawi over maize scarcity, a development that threatens to escalate hunger and malnutrition in the country.
“The government entity in Admarc could indeed play a crucial role in mitigating inflation-related food crises and providing stability in food prices for consumers.”
Chagona said a revitalised Admarc, backed by an unwavering and sincere political will, can protect the country against inflation, ensure price stabilisation, control illegal markets promote agricultural development and improve public welfare.
He observed that the anticipated surplus of 360 000 metric tonnes [MT] in the 2022/23 farming season against the national requirement of 3.2 million MT offers no comfort to a country whose citizens would do with some hope-inspiring actions on the ground, “especially from the powers that be”.
CisaNet data indicates that maize is already fetching as high as K30 000 to K40 000 per 50 kilogramme (kg) bag, translating to K600 to K800 a kg, against government’s recommended K500 per kg or K25 000 per 50 kg bag.
Meanwhile, the International Food Policy Research Institute (Ifpri) data shows that maize retail prices continue to escalate, rising to an average of K25 500 in June 2023, up from K12 750 the same period last year, representing a 100 percent rise.
According to Ifpri, Admarc sales were reported in one out of 26 markets monitored by the institute with no purchases.
Last week, Parliamentary Committee on Agriculture chairperson Sameer Suleman also expressed concern over the delays by the government to release K6 billion for maize purchases amid rising maize prices.
He said: “This is a disaster in the making. Government is failing to release money for Admarc to buy maize and most of the maize is going to vendors yet, as a country, we do not have enough stocks for strategic grain reserves [SGR].”
Last month, the Ministry of Agriculture said Admarc will this year not be involved in maize procurement as the function will be undertaken by the National Food Reserve Agency (NFRA).
However, NFRA, which has only procured 8300MT from its target of 11 000MT at K550 per kg, said with other traders buying the commodity at K600 per kg, maize is not coming in large quantities as it used to.
But Suleman said NFRA does not have the capacity to buy from smallholder farmers, observing that the absence of Admarc will escalate the maize prices further as the State produce trader was also used for price stabilisation.
Meanwhile, Consumers Association of Malawi executive director John Kapito has said it is too late for Admarc to make an impact on maize prices when local traders have invaded and bought most of the grain.
In May, the government announced an allocation of K12 billion to NFRA towards maize purchases but only released K6 billion.
In Malawi, maize, as part of the food component, accounts for about 53.7 percent of the consumer price index, an aggregate basket of goods and services used for computing inflation.
