Consumers are panicking as maize prices continue to rise, with a 50 kilogramme (kg) bag of the staple grain now selling at K65 000 in some produce markets, Business News has established.
Spot-checks in some produce markets and data gathered by International Food Policy Research Institute (Ifpri) and Famine Early Warning Systems Network (FewsNet) show that consumers are buying maize at K1 300 per kg, which is way above the K790 per kg or K39 500 per 50kg bag at State-produce trader Agricultural Development and Marketing Corporation (Admarc) markets.
This is a big blow to low-income workers who earn a minimum of K90 000 per month, which is the Malawi Government-set minimum wage and also comes at a time the cost of living averages about K540 000 for a family of six.
In an interview yesterday, Grain Traders Association of Malawi president Grace Mijiga Mhango said the prices are a true reflection of current market trends.
She said: “It is a fact that as a country, we do not have enough maize. Unless Admarc opens all their markets and offers fair prices, the prices will continue to rise.
“As traders, we have been supplying maize from Mozambique and Tanzania on the local market since July. This time, Mozambique has no maize, but maize from Tanzania is proving to be expensive due to the volatile exchange rate.”
FewsNet data shows that National Food Reserve Agency earlier projected a rise in maize prices to K1 000 per kg between October 2024 and January 2025 amid inadequate money to restock its strategic grain reserves.
Consumers Association of Malawi executive director John Kapito yesterday said with maize supply lower than demand, the current prices are beyond the purchasing power of many consumers.
He said: “It is disheartening that most of those affected are women and children. In most markets we have visited, prices are ranging from K55 000 to K65 000 for a 50kg bag, which can only last a family for four weeks.
“While we are aware that the government is providing free maize to vulnerable families, such supplies are only done periodically, which does not address hunger challenges.”
In an interview on Sunday, Lunzu-based Fostina Banda, a 67-year-old mother of three, said she can only afford a five-litre bucket of maize at K6 000 per week.
As part of the food component, maize contributes about 53.7 percent to the consumer price index, an aggregate basket of consumer goods and services used to compute inflation. This means that any movement in the price of maize has a direct bearing on consumers.
In 2024, food inflation hit an average of 41.6 percent, affecting people’s purchasing power, but in November, the rate dropped to 33.7 percent, with year-on-year headline inflation easing to 27 percent from 32.4 percent the previous month.
Last month, Admarc spokesperson Theresa Chapulapula said Malawi will have enough maize for sale during the lean period thanks to imports from Tanzania, adding that they received 10 000MT out of the 36 000MT they purchased from farmers, which State produce trader is currently selling.
“Admarc has 240 commercial markets and 119 social markets. We are gradually opening them based on demand,” she said.
The Malawi Vulnerability Assessment Committee Report indicated that the number of people in need of food aid will increase from 4.2 million to 5.7 million during the lean period from October last year.
