Maize prices have gone up by four percent to K819 per kilogramme (kg) from K790 per kg due to shortage of fuel to transport the grain and the kwacha instability, it has emerged.
The International Food Policy Research Institute (Ifpri) noted in its latest report that the upward trend follows a period of maize price stability courtesy of steady informal imports from neighbouring Tanzania.
The report said most maize currently traded in Malawi is imported from Tanzania and the upward adjustment means many Malawians will continue digging deeper into their pockets at a time household incomes are dwindling.
Reads the report in part: “The kwacha price of informally imported maize increased as the Malawi kwacha lost market value, pushing up retail prices across Malawi.
“Increased transport costs due to fuel shortages throughout the country likely also contributed to the uptick in prices.”
The Southern Region consistently maintained the highest average prices, starting at approximately K865 per kg and showing a gradual increase to around K898 per kg by the end of October, according to the report.
On the other hand, the Central Region followed a steady upward trend, rising from K771 per kg to about K808 per kg while the North, which had the lowest prices, showed minor fluctuations, moving within a narrower range from K619 per kg to K640 per kg.
“An increase in the price of imported maize from around K550 per kg in September to over K600 per kg at the end of October, likely due to dwindling surplus stock in Tanzania, contributed to some of the growth in maize prices in Malawi,” reads further the report.
For over a month now, Malawi is experiencing erratic availability of petrol and diesel attributed to shortage of foreign exchange and other contractual glitches with suppliers.
Commenting on the development, Centre for Social Concern economic governance programmes officer Agnes Nyirongo said higher food prices will reduce purchasing power and force families to cut back on food quantity or quality thereby adversely affecting their nutritional status and overall health.
According to Ifpri, at the market exchange rate of K1 750 to a US dollar, maize prices in Malawi are comparable to or higher than prices in Tanzania, but lower than maize prices in Zambia, Mozambique, Zimbabwe and South Africa.
