Maize prices jump 27%, shows report
Retail maize prices increased by 27 percent in July amid dwindling supplies as Malawi is emerging to be a destination with the most expensive maize prices in the region, according to a new report.
In its July 2023 Malawi Monthly Maize Market Report, International Food Policy Research Institute (Ifpri) says the steepest monthly increase this year is happening at a time Agricultural Development and Marketing Corporation (Admarc) is neither buying nor selling maize.
Ifpri data shows that average maize prices rose from K512 per kilogramme (kg) in the last week of June to K650 per kg or K32 500 per 50 kg bag in the last week of July. This is above the government’s set minimum price of K500 per kg or K25 000 per 50 kg bag.
Reads the market report in part: “Traders attribute this price surge to multiple factors, including fuel scarcity, which led to higher transport costs, impacting overall prices. Compared to the same period last year, maize prices are currently 104 percent higher.
“Despite the government’s directives on clearance on importation of maize, this increase may be due to the fact that while most traders remained unaware of this development those who were aware, still incurred additional expenses involved in crossing the border with maize from Zambia and Mozambique.”
According to Ifpri data, the Southern Region witnessed the highest monthly average retail price of K653 per kg, which is 13 percent higher than the Central Region’s K580 per kg and 38 percent higher than the Northern Region’s K489 per kg.
Notably, the highest weekly average price for maize was also recorded in the Southern Region at Mpondabwino Market in Zomba District where a kilogramme of maize sold for K792 per kg or K39 600 per 50 kg bag in the fourth week of July.
Ifpri says Mozambique has consistently offered the lowest prices compared to Malawi’s neighbouring countries, making it the preferred option for most traders in the Southern Region to source the maize.
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, which is currently at 27.3 percent.
Consumers Association of Malawi executive director John Kapito said in an interview the lean season has come early this year and it is scary to imagine what the situation will be like between October and February next year.
To support food security initiatives in the country, Secretary for Trade and Industry Christina Zakeyo announced that effective July 5, import procedures for maize had been relaxed, mandating the Malawi Revenue Authority to facilitate clearance for maize importation with no requirement for an import licence from the ministry.
