Hunger prompts maize rationing
Ministry of Agriculture has ordered Agricultural Development and Marketing Corporation (Admarc) to restrict maize sales to a maximum of 25 kilogrammes (kg) amid reports of hunger and shortage of the staple grain.
Minister of Agriculture Sam Kawale made the announcement in Parliament in Lilongwe yesterday in response to concerns from members of Parliament (MPs) on the hunger situation in the country and rising prices of maize on the market.
He said the country’s development partners have helped government in redeeming 50 000 metric tonnes (MT) 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.
The maize stock has since been put under the Strategic Grain Reserves (SGR) and there are plans to procure an additional 100 000 MT with support from the development partners, according to the minister.
Kawale said: “Government and development partners are also working on redeeming maize under CDH Investment Bank.
“Soon, Admarc depots will be flooded with maize and K400 million has been allocated to transport the maize to all Admarc depots so that people are able to access it.”
He said the maize will be sold at K300 per kg, a price almost half the average K600 private traders are asking.
“Government is rationing the maize because we are aware that there are vendors who are planning to buy the maize in bulk and resell it. So, each person will only be allowed to buy 25 kilogrammes,” said Kawale.
The minister also told the House that the actual quantity of maize held as collateral for the NBS Bank plc loan was 60 000 MT, but 10 000 MT went bad and classified as “not-fit-for-human-consumption”.
In an interview later, Kawale said the 100 000 MT of maize is not the only stock available in the country as the National Food Reserve Agency (NFRA) also has the commodity.
However, he said the 100 000MT is not fully accessible to Admarc, and that Admarc’s access will depend on demand alongside the Department of Disaster Management Affairs (Dodma).
Minister of Finance and Economic Affairs Sosten Gwengwe said World Bank that has paid off the NBS Bank maize.
However, he said the 10 000 MT that was discoloured will be used for animal feed.
Said Gwengwe: “The World Bank could not buy the 10 000MT that went bad because it is not fit for human consumption.”
Parliamentary Committee on Agriculture chairperson Sameer Suleman said it was sad that the country has lost 10 000MT when some households are facing hunger.
He said: “If this maize was released earlier to be sold to Malawians, it would have helped stabilise maize prices but now a 50kg bag of maize is being sold at over K35 000 and in some areas at K40 000.
“The 10 000MT is worth about K3 billion. The maize has been lost and there is need to hold someone accountable.”
Blantyre North MP Francis Phiso (Democratic Progressive Party-DPP) said many people in his constituency are suffering and government needs to move fast to open Admarc markets for people to access maize.
On his part, Chitipa South legislator Welani Chilenga (DPP) called on government to expedite the process of maize distribution to Admarc markets.
“Admarc markets should be opened across the country and start selling maize. We cannot wait for people to die of hunger. People are suffering,” he said.
Dowa West MP Abel Kayembe (Malawi Congress Party) also lamented that people in his constituency are facing hunger and they need to access Admarc maize.
Financially struggling Admarc owed banks over K60 billion and had been seeking government bailout.
The debts also left Admarc failing to play its role of stabilising maize prices and ensuring availability.
The government shutdown 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 set to put the struggling entity on a restructuring path.
The Malawi Vulnerability Assessment Committee estimated that 3.8 million people will face hunger during the 2022-2023 lean season.
