Maize prices in mixed fortunes
Maize prices in most produce markets in the country continue to rise, with a market in Chikwawa District recording the highest price at K938 per kilogramme (kg), making the staple grain out of reach of many people.
The increase, according to a November 2023 maize market report produced by the International Food Policy and Research Institute (Ifpri), is on account of rising transport costs incurred while travelling long distances to access the staple grain.
However, the story is different in the areas where the Department of Disaster Management Affairs (Dodma) is initiating maize distribution as part of the lean season response, which is likely to reduce demand for the grain.
Furthermore, some households are receiving maize as payment for manual labour on farms, thereby influencing the decreased demand and prices.
Reads the report in part: “While still trading at higher prices than almost anywhere else in the country, maize became cheaper in two Southern Region markets of Luchenza in Thyolo and Mulanje, with declines of five and four percent to K857 per kg and K817 per kg, respectively, during November.
“Traders report that this increase was influenced by the market’s dependence on maize imports from Tanzania, which became more expensive due to the recent currency devaluation and increased fuel cost.”
During the month under review, Southern Region recorded the highest monthly average maize retail price at K810 per kg or K40 500 per 50 kg bag.
The monthly average maize price in the Central Region was recorded at K724 per kg or K36 200 per 50 kg bag, creating a 23 percent difference from prices observed in the Southern Region, according to Ifpri.
The Northern Region recorded the lowest monthly average retail maize price at K607 per kg or K30 350 per 50 kg bag, which is 35 percent less than the prices in the Southern Region.
The lowest monthly price was recorded in Karonga at K575 per kg or K28 750 per 50 kg bag, which is above the government’s set minimum price of K500 per kg.
Speaking in an interview yesterday, Consumers Association of Malawi executive director John Kapito said the 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.
The sustained increase in maize prices on the local market threatens the outlook for inflation rate, currently at 26.9 percent.
As part of the food component, maize traditionally impacts the country’s economy as it constitutes 53.7 percent of the consumer price index, an aggregate basket of goods and services for computing inflation.
Following the 44 percent kwacha devaluation, the average cost of living has increased to K433 793 in November from K397 134 the previous month, according to Centre for Social Concern data.
Inflation, the rate of the general rise in prices over a given period of time, has been on the rise for the past 12 months to August, largely due to an increase in food and non-food items.
