Desperate for survival, some farmers in the country have started selling their produce before harvesting to meet growing household demands.
In some places, farmers are selling the staple grain at an average of K20 000 per 50 kilogramme (kg) bag of maize, way below the current market price of K100 00 and K39 500 per 50kg bag at State-produce trader Agricultural Development and Marketing Corporation (Admarc) markets.
For tobacco, farmers are selling the green gold at between K1 000 and K1 500 per kg, about two months before the tobacco market opens.
The same tobacco, according to Tama Farmers Trust president Abiel Kalima-Banda, could fetch an average of K7 000 at the tobacco market.
In an interview yesterday, Kalima-Banda said while the malpractice has the danger of affecting buyer demand volumes and forex exchange earnings, farmers will also be losing big time.
He said: “For five years, we have failed to meet buyer demand, and this is one of the reasons why we fail.
“Again, at these prices, it means farmers are forgoing K5 000 per each kg sold and also with 80 percent of the farmers under contract, it would not mean well to the companies where we get the inputs from.”
On his part, Tama Farmers Trust chief executive officer Nixon Lita said the regulator is being informed of the malpractice, which is against the Tobacco Act.
He said “It is these practices of side selling [selling outside the official markets] that feed into cross-border smuggling, and also lead to loan defaults.”
Speaking separately, Farmers Union of Malawi president Maness Nkhata said the union is aware of the situation and has since called for interventions that will help farmers to diversify their sources of income to help them during the lean periods of the season.
“FUM further calls for contract farming and contract marketing arrangements that will support farmers with their cash needs during the lean periods,” she said.
Meanwhile, Grain Traders Association of Malawi president Grace Mijiga Mhango said the association is not surprised with the development as there is a lot of desperation for money out there.
She said: “This price sets up minimum buying price for maize in the current season. ”
Parliamentary Committee on Agricuture chairperson Sameer Suleman called government to “find immediate solutions immediately”.
However, Minister of Agriculture Sam Kawale did not respond to our questionnaire by the time we went to press.
The Ministry of Agriculture is mandated by law to set minimum farmgate prices for crops grown in Malawi.
The exercise is in line with the Agricultural General Purposes Act 1987 Cap 65.05 of the Laws of Malawi.
