As the lean season sets in, maize prices continue to escalate, hitting K1 000 per kilogramme (kg) of K50 000 per 50 kg bag in some produce markets across the country, it has emerged.
International Food Policy Research Institute (Ifpri) data shows that on average, weekly average retail price reached K1 000 per kg in November from K939 per kg in October.
In its November 2024 Malawi Maize Market Report, Ifpri said an increase in the price of imported maize at the end of November, likely due to the weakening of the kwacha on the informal markets as well as the dwindling surplus stock in Tanzania, contributed to the increase in maize prices in Malawi.
Ifpri data shows that on the informal market, the kwacha weakened from K2 800 against the dollar in October to K3 000 by the end of November, pushing retail prices higher across the country.
Reads the Ifpri report in part: “Increased transport costs due to fuel shortages in Malawi further contributed to high prices in the Central and Southern regions as did strong demand in Mozambique where maize still entered from Malawi for up to K1 000 per kg.
“The situation is still further worsened by increased transport costs due to ongoing fuel shortages.”
The rising food prices, particularly for maize, is one of the most pressing factors exacerbating the cost of living which is currently at K540 353 for a household of six, according to the Centre for Social Concern (CfSC).
Transport prices have also been on the rise, due to fuel scarcity, which has been worsened by shortage of foreign exchange, the report further indicates.
CfSC economic governance officer Agnes Nyirongo said in an interviewn on Friday that families are increasingly resorting to harmful coping strategies such as reducing the frequency of meals, substituting nutritious foods with cheaper alternatives and sacrificing healthcare and education.
“This situation is taking a toll on household food security and overall well-being, leading to increased vulnerability and poverty,” she said.
In June 2024, the Famine Early Warning Systems Network (FewsNet) projected a rise in maize prices to K1 000 per kg between October 2024 and January 2025 amid inadequate money to restock its strategic grain reserves.
FewsNet data shows that National Food Reserve Agency had 15 000MT of maize stocks in the Strategic Grain Reserves by end June while Agricultural Development and Marketing Corporation (Admarc) purchased 6 000MT.
But last week, Admarc spokesperson Theresa Chapulapula said Malawi will have enough maize for sale during the lean period thanks to imports from Tanzania.
She said they have received 10 000MT out of the 36 000MT they purchased from farmers, which it is currently selling.
“Admarc has 240 commercial markets and 119 social markets. We are gradually opening them based on demand,” she said.
The Malawi Vulnerability Assessment Committee earlier said the number of people in need of food aid will increase from 4.2 million to 5.7 million during the lean period from October this year.
