Grain traders explain maize stock position, rising prices
Grain Traders Association of Malawi says they have a combined 10 000 metric tonnes (MT) of maize in their stock, with much of it in the Central Region.
The association’s president Grace Mijiga Mhango said this in an interview yesterday in the context of the rising prices of the staple grain maize, which has hit K37 000 per 50 kilogramme (kg) bag amid shortages.
She said: “Because much of the maize is in Lilongwe, traders are travelling from across the country to get the stocks and when they want to sell the maize, they factor in issues of transport and logistics, which is pushing up prices.
“Again, there is a lot of speculation out there, which is fuelling price hikes. We don’t have enough maize, but we are not in a crisis.”
Mijiga Mhango said they hoped that the partial opening of Agricultural Development and Marketing Corporation (Admarc) markets could ease prices.
Maize prices have been on the rise, increasing by about 300 percent within a year from about K9 500 per 50 kg bag last year to around K37 000 per 50 kg bag.
Last week, Minister of Agriculture Sam Kawale told Parliament that Admarc has been ordered to restrict maize sales to a maximum of 25kg amid reports of hunger and shortage of the staple grain.
He said the country’s development partners have helped government in redeeming 50 000MT of maize held by NBS Bank plc as collateral for loans the State produce trader owed. He said this will help alleviate hunger in the country.
Government shut down Admarc last September and sent all its 4 000-plus staff on paid leave before formally retrenching all of them on January 31 2023.
The move was aimed at putting the parastatal on a restructuring path. The Malawi Vulnerability Assessment Committee Report estimated that 3.8 million people will face hunger during the 2022/2023 lean season.
