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Maize prices double in one year—Report

The price of maize, the country’s staple grain, has more than doubled in one year (January 2015 and January 2016), putting pressure on household expenditure and inflation.

In January 2015, according to various reports, a 50 kilogramme (kg) bag of maize was selling at an average of K4 300 and is currently selling at around K11 000 (about $15.5) in some markets.

Maize prices have shot to the roof due to scarcity
Maize prices have shot to the roof due to scarcity

Maize has a direct bearing on inflation rate because it has a huge weight at 50.2 percent in the consumer price index (CPI), a measure of changes in the price level of a market basket of consumer goods and services purchased by households.

An analysis of maize prices by Centre for Social Concern’s (CfSC) Basic Needs Basket shows a 50 kg bag of maize in January 2015 was selling at K4 871 (about $6.8) in Lilongwe, K4 350 (about $6.1) in Zomba, Blantyre residents were buying the same quantity at K5 000 ($7) while those in Mzuzu, Karonga and Mangochi had to part with K5 400, K4 500 and K4 883 respectively.

The report showed that between January and March 2015, the price of maize jumped by an average 27 percent.

The maize price rise trend continued as CfSC reported in October 2015 that a 50 kg bag was selling at an average of K8 500 and K8 417 in Zomba and Blantyre urban respectively.

In its latest report, the World Food Programme (WFP) mobile Vulnerability Analysis and Mapping (mVAM) survey between January 4 and 7 2016 released on Friday, also points to the continued soaring prices of the grain.

According to mVAM, which tracks the prices using mobile phone, maize prices averaged K10 000 per 50 kg bag in most parts nationwide during the first week of January this year.

But in some parts, says the report, the price is as high as K220 per kg, which means households had to part with at least K11 000 to buy a 50 kg bag of maize.

Reads the report in part: “Maize prices have continued to increase in the first week of January 2016 with most Southern Region districts of Phalombe, Blantyre, Nsanje, Chikwawa, Mulanje and Mangochi traders selling at K200 per kg or above.

“The current prices in the south are double the three-year national average as well as Admarc [Agricultural Development and Market Corporation] prices. Out of 48 surveyed markets, 50 percent had prices equal to or greater than K200 per kg compared to 36 percent in the fourth week of December, 2015.”

But it, however, said in some markets, the price has exceeded K200 per kg. For instance, at Tomali in Chikwawa, the price is at K220 per kg, Sorjin in Nsanje (K220 per kg and Phalombe (K215 per kg).

The lowest average prices, said mVAM survey, were recorded in Chitipa (K163 per kg) and Ntchisi (K165 per kg), but said these prices increased by 23 percent and 12 percent respectively, compared to the previous week and remain high above the three-year national average.

Admarc is selling maize at K110 (about $0.15) per kg, but with most depots having no grain, people are forced to buy from vendors at higher prices. n

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