Maize prices drop 20 percent
Maize prices dropped by about 20 percent from K105.79 (about $0.26) per kilogramme (Kg) in April to K85.10 per kg in May, on account of the harvest season, indicates the Ministry of Agriculture and Food Security data posted on their website.
The data further indicate that the price of the staple peaked in March 2013 at K135.11 per Kg, dropped to 105.79 per kg in April before coming to the latest average.
The drop in the maize price points to a decline in inflation rate—31 percent in May—in which the food basket constitutes 50.2 percent.
Commenting on the maize price fall, Ministry of Agriculture spokesperson Sarah Tione in a telephone interview on Tuesday said the prices follow seasonal trends.
“The maize prices tally with the marketing cycle. Currently the market is experiencing farm gate prices because farmers are selling their produce. However, during lean periods of November to February maize prices are likely to pick up but that will be dependent on supply and demand. During the lean periods the farmers stocks will be finished and the market will be influenced by traders’ prices,” said Tione.
Selectively, in Northern Region, in May, at Rumphi maize was selling at K136.62, Mzuzu K113.01, Mzimba K125.12, and Chintheche K100.71 per kg.
In the Central Region, at Lilongwe Market the staple was selling at K113.33, Nanjiri K106.82, Nkhotakota K100, and at Salima K97.52 per kg.
The Malawi Government has projected a maize surplus of 740 000 metric tonnes this year, about 50 percent higher than last year’s harvest.
In 2012, the country harvested 3.624 million metric tonnes of maize with a surplus of 566 552 metric tonnes. In 2011 Malawi harvested 3.6 million metric tonnes with a surplus of 1.2 million metric tonnes. The country requires 2.6 million metric tonnes.
Recently Civil Society Agriculture Network (Cisanet) national coordinator Tamani Nkhono-Mvula commended Admarc for buying maize from the market early and noted that it was important that the company enhances its distribution operations during the lean months to stabilise prices of the staple.
The Famine Early Warning System June 2013 report noted that maize stocks—the Strategic Grain Reserves (SGR) and Agriculture Commodity Exchange—were still tight by May 2013.
The report noted that in April the Agricultural Commodity Exchange had 2 000 metric tonnes of maize under its warehouse receipt system while the SGR, managed by the National Food Reserve Agency(NFRA), was still exhausted.
However, the SGR according to NFRA acting chief executive officer Clement Lwanda was being replenished.
He said that Norway, Ireland and the Flanders have provided resources for replenishing the SGR with 50 000 metric tonnes and that Malawi Government will also provide resources to replenish it.
