Maize prices increase by 151%

April 2013 maize prices are 151 percent higher than those of April 2012 indicates data from the Malawi’s Ministry of Agriculture and Food Security released recently.

The data shows that maize averaged K105.79 (26 US cents) per kilogramme (kg) in April 2013 while the staple was selling at K42.21 (10 US cents) per kg in the same period last year.

Commenting on the price differences, Civil Society Agriculture Network (Cisanet) national coordinator Tamani Nkhono-Mvula in a telephone interview on Wednesday said the price rise is due to both changes in demand and cost of production.

“The cost of production went up in the period due to the general rise in prices. Although government is implementing the Farm Input Subsidy Programme [Fisp] which avails farmers with cheap inputs, not all farmers benefit. An increase in demand caused by traders buying maize from the market may also have had an effect on the price. Traders, including Admarc started buying maize early possibly to buffer for a possible shortage as experienced earlier,” said Nkhono-Mvula.

He, however, commended Admarc for buying maize from the market early and noted that it was important that company enhances its distribution operations during the lean months to stabilise prices.

The ministry’s statistics also indicate that in 2012/13 season, maize averaged K74.23 (18 US cents), about 101 percent up from K36.89 (9 US cents) in the previous period.

Specifically, in April this year, in the Central Region, at Malomo maize was selling at K158.33 per kg, Mponela K110, Nkhotakota K125, and Lilongwe K132.50. In the Northern Region, at Chilumba, the grain was selling at 121.96 per kg, Mzuzu K144.41 per kg and Mzimba K125.41 per kg. In the Southern Region, at Liwonde, the staple was selling at K101.83 per kg, Lunzu K106.2 while in Nsanje the grain was being bought at K79.11 per kg.

The Famine Early Warning System Network (Fewsnet) May 2013 report noted that the Central and Northern Regions will experience food shortages between July and September this year.