Maize grain reserves tight
Maize stocks—the Strategic Grain Reserves (SGR) and Agriculture Commodity Exchange—were still tight by May 2013, indicates the Famine Early Warning System (Fewsnet) June 2013 report.
The revelation is a call to authorities to hasten the replenishment of grain reserves or endanger the nation in the forth coming lean period.
Poor stocks in the SGR may also be a disaster if the country experiences a drought next year.
Fewsnet in the June 2013 report notes that updated information from the Ministry of Agriculture and Food Security shows that in April the Agricultural Commodity Exchange had 2 000 metric tonnes of maize under its warehouse receipt system.
“[In April] the SGR, managed by the National Food Reserve Agency (NFRA) are still exhausted. Currently, the NFRA has started the process of replenishing SGR stocks by using the maize quantity pledged earlier by Norwegian and Irish governments in support of the 2012/13 food insecurity interventions. This maize is expected to be purchased locally from surplus producing areas,” notes Fewsnet in the report.
However, NFRA acting chief executive officer, Clement Lwanda, responding to an e-mailed questionnaire on Tuesday said the replenishment is in progress.
“Norway, Ireland and the Flanders have provided resources for replenishing the SGR with 50 000 metric tones. Malawi Government shall provide resources to replenish the SGR as well. Contracts for the two replenishment activities have been awarded and deliveries are in progress.
” This is normal with the SGR. After draw-downs, replenishment is done in the following harvesting season. The humanitarian SGR has been pegged at 75 000 metric tonnes which is supposed to be in either physical or monetary forms,” said Lwanda.
Fewsnet in the report further notes that in an effort to secure more maize stocks, the Agriculture Development corporation (Admarc) has extended their purchase of maize at competitive prices in the southern region to also include purchases in the central region.
Fewsnet May 2013 report noted that the Central and Northern Regions will experience food shortages between July and September this year due to dry spells that the areas experienced.
Ministry of Agriculture and Food Security April 2013 data indicates that maize prices were 151 percent higher than April 2012 prices
The data indicate that maize averaged K105.79 in April 2013 while the staple was selling at K42.21 in the same period last year.
The ministry’s statistics also indicate that in 2012/13 season, maize averaged K74.23, about 101 percent up from K36.89 in the previous period.
Civil Society Agriculture Network (Cisanet) national coordinator, Tamani Nkhono-Mvula, reacting to price differences between this year and last year, was quoted recently commending Admarc for buying maize from the market early and noted that it was important that company enhances its distribution operations during the lean months to stabilise prices of the staple.
