Maize prices down 12% as more Admarc depots open
Pressure on maize prices in most produce markets in the country continues to decline, with retail prices falling by an average of 12 percent in February amid rising supplies from Admarc.
A February 2023 Monthly Maize Market Report by International Food Policy Research Institute (Ifpri) shows that weekly average maize prices have dropped from K880 per kilogramme (kg) in the final week of January to K771 per kg, or K38 550 per 50kg bag, in the final week of February, representing a 12 percent drop.
The largest decline in prices by 24 percent was observed in Mwanza at K805 per kg while in Chitipa District, the price of maize dropped by 18 percent to K574 per kg.
Reads the report in part: “In February, average daily maize prices continued to decline, with all 26 Ifpri monitored markets experiencing a decrease for the first time in 2024.
“All three regions experienced declining prices in the month of February.”
According to the data, the Southern Region reported the highest monthly average retail price of K870 per kg, marking a 12 percent decrease from January’s price of K991 per kg.
In the Central Region, prices decreased by 16 percent from K911 per kg in January to K769 per kg in February while the Northern Region reported the lowest monthly average price of maize at K643 per kg from K710 per kg in January, making it the region with the lowest prices compared to others.
Reads the report in part: “This decline coincided with the start of garden maize harvesting by some farmers in the region, leading to increased availability of maize to traders.”
Meanwhile, the Ifpri report shows that Agricultural Development and Marketing Corporation (Admarc) sales were reported in 22 of the 26 markets monitored by Ifpri, five in the Northern Region, four in the Central Region and 13 in the Southern Region.
In an interview yesterday, Consumers Association of Malawi executive director John Kapito said the drop in prices is good as consumers will be relieved.
He said the maize price surge is a threat to consumers, given the significance of maize in the country’s Consumer Price Index (CPI), an aggregate basket of consumer goods and services used for computing inflation.
“Any rise in maize prices comes as a blow because this ultimately pushes up prices of everything,” he said.
Minister of Agriculture Sam Kawale is on record as having said that due to the availability of maize, there will be a significant drop in flour prices across the country.
As part of the food component, maize contributes about 53.7 percent of the CPI, which means any movement in the price of maize has a direct bearing on consumers.
Meanwhile, Malawi’s year-on-year inflation rate has been on the rise in recent months, soaring to 35 percent in January, the highest in 11 years, mainly due to rising food prices, according to National Statistical Office figures.
