Eaveryday Malawian consumers are waking up to rising prices, a situation commentators say is fuelled by forex scarcity and a growing desire to substitute maize for alternative foodstaffs in the homes.
Published data from Centre for Social Concern (CfSC) shows that the average monthly cost of living for a family of six surged from K578 843 in November to K615 138 in December, reflecting an increase of 6.3 percent increase.
As at yesterday, Business News observation showed that a 50 kilogramme bag of maize was fetching an average of K80 000 while prices of alternatives such as cassava and sweet potatoes have also been escalating.
In an interview yesterday, Lilongwe University of Agriculture and Natural Resources Centre for Agriculture and Research Development director Innocent Pangapanga-Phiri said with maize prices up, households are now substituting for less expensive food commodities.
This shift, he said, has created demand and consequently pushed up prices of alternatives.
Said Pangapanga-Phiri: “What we see is expected given that households are moving from consuming a lot of maize to lesser food commodities.
“What could be done is to let Admarc do its role of stabilising food prices because maize being sold by vendors is expensive as they want to make profit by taking advantage of scarcity of any commodity.”
On her part, CfSC economic governance officer Agness Nyirongo observed that weak market regulation has further exacerbated the situation, allowing traders to hike prices.
She said: “Poor oversight allowed speculative activities to thrive, leading to artificially inflated prices. Traders capitalised on the shortages, driving prices even higher.
“Families are forced to spend a larger share of their income on basic necessities, leaving little for other essentials like education and healthcare while vulnerable groups are bearing the brunt of this crisis.”
On his part, National Workig Group on Trade and Policy chairperson Frederick Chagaya observed that the general rise in prices due to unseen devaluation of the kwacha on the black market is making prices for the basket expensive.
He said: “While the cassava seller grew it locally even without imported inputs, he will use the income to buy cooking oil and other amenities that are subjected to the devaluation.
“Again, cassava and many other traditionally and locally-grown food stuffs normally offer cheaper alternatives. However, although demand for them has risen, the supply hasn’t risen with it.”
Consumers Association of Malawi executive director John Kapito observed that considering that maize is both a political and economic product, there is need for government to find a lasting solution to end the continued devaluation of the kwacha which is hurting Malawians.
Meanwhile, some shops have started rationing imported products as lack of forex on the market is making it difficult for them to restock, as relying on the black market has proved expensive.
While the official rate is hovering at around K1 751 in authorised dealer banks, on the parallel market the dollar is trading at around K4 200.
