The Reserve Bank of Malawi (RBM) has described the 25 percent drop in maize prices in March as temporary, stating that serious interventions are needed to lower the prices going forward.
In its Market Intelligence Report, the central bank said maize retail prices averaging K1 292 per kilogramme (kg) or K64 600 per 50kg bag by end March was a significant retreat from the record highs reached in early March at K1 743/kg or K87 150 per 50kg bag.
The RBM attributed the drop in prices to the newly harvested maize on the market, slowing depreciation of the kwacha and a surge in maize imports, especially from Mozambique and Zambia.
Reads the report in part: “Precisely, the average retail price for maize in the first quarter of 2025 rose sharply to K1 431 per kg from K897 per kg in the previous quarter, representing a 59 percent increase.
“Compared with the corresponding quarter in 2024, maize prices in the first quarter of 2025 were 78 percent higher than the K805 per kg recorded in first quarter of 2024.”
RBM has since highlighted that the stark contrast underscores the ongoing volatility in the country’s maize markets, driven by supply chain dynamics, cross-border trade and domestic production cycles.
The report comes at a time RBM acknowledged that dealing with inflation needs collective efforts, adding that its monetary policy must be complemented with supportive fiscal policy interventions.
In a separate interview on Thursday, Centre for Social Concern economic governance programmes officer Agness Nyirongo agreed with RBM, saying easing maize prices areshort-term because the country lacks maize stabilisation strategies.
She said to stabilise maize prices, government needs to enhance agricultural productivity, strengthening grain storage and distribution systems, diversifying food sources, implementing strategic grain reserves and adjusting monetary and fiscal policies, among others.
Said Nyirongo: “RBM monetary policies play a pivotal role in controlling inflation. Adjusting interest rates and managing money supply can influence maize prices indirectly.
“Furthermore, fiscal policies that promote agricultural development and reduce import dependency can contribute to long-term price stability.”
She said Malawi can also learn from countries such as Zambia and Tanzania, who have implemented successful maize prices stabilisation programmes through a combination of strategic reserves and market interventions.
In an interview on Tuesday, Consumers Association of Malawi executive director John Kapito said that the risk with the current maize prices decline is that they are not supported by anything.
He said: “The only way to sustain and maintain these prices is bringing in more maize stocks to address demand, which is quite high but temporarily suppressed by the harvests.
“There is need for various agencies such as Agricultural Development and Marketing Corporation to bring huge volumes of maize now till the lean period to avoid the prices going up.”
Meanwhile, economist and market analyst Cosmas Chigwe has described the projected persistent elevated prices for commodities such as maize as a sign that the RBM will maintain tight monetary policy stance in 2025.
Inflation rate was recorded at 30.5 percent in March slightly lower than the 2024 average of 32.3 percent as the RBM project it to average 22 percent in 2025.
