Maize prices in Malawi have remained the highest compared with regional neighbours using the official exchange rate of K1 751 to a dollar, it has emerged.
The International Food Policy Research Institute (Ifpri) Malawi Monthly Maize Market Report for August 2024 shows that in Malawi, a 50 kilogramme (kg) bag of maize is selling at as high as K43 500 while in Zimbabwe, a bag is fetching K36 000, in Mozambique it is at K31 000, in South Africa, it is at K26 000 while in Zambia, it is selling at K24 000.
In Tanzania, the price of maize was the lowest at K19 000 per 50kg bag, according to the report.
Reads the report in part: “Malawi’s retail maize prices exceeded those in Mozambique, Zambia, South Africa and Tanzania when using the official exchange rate of K1 751 to the dollar.
“Removing trade barriers and allowing small-scale traders to access regional supplies, especially from surplus-producing countries such as Tanzania, can lower local prices and enhance food security in Malawi.”
Locally, Ifpri data shows that the highest price of K43 500 per 50 kg bag was recorded at Lunzu Market in Blantyre, while the lowest price was recorded in Karonga District at K31 800 per 50 kg bag.
In an interview yesterday, agriculture policy development expert Tamani Nkhono Mvula said while it is surprising that maize prices are lower in regional neighbouring countries as they also faced dry spells, their food reserve systems stabilised the prices unlike in Malawi.
He said: “It is not surprising that maize prices are low in Tanzania because eastern African countries had bumper yields because they did not experience prolonged dry spells.
“However, with the other mentioned countries, it could be attributed to strong food reserve systems, which ensured maize is released in time to stabilise prices because we believe that in Malawi, some people are hoarding the grain.”
Farmers Union of Malawi chief executive officer Jacob Nyirongo, in an interview yesterday, expressed fear that the situation could exert further pressure on inflation and divert farmers’ energy during the growing season and affect overall output.
He said: “This means that food inflation will continue to put pressure on the overall inflation, which will lead to an increased number of households that require food aid.
“This also has implications for the 2024/25 season as most farmers could prioritise food over improved inputs in their budgets, which might compromise maize output for the coming season.”
Consumer rights activist John Kapito said he is not surprised because maize prices respond to the availability of the commodity on the market.
He called on authorities to address the issue before the lean period where food prices tend to escalate further.
Said Kapito: “The other challenge is that prices of maize are worsened by scarcities during the lean period where demand is high against supply and it is important that we should address the scarcity issues seriously in our food supply chain.
“As a country, we suffer from lack of planning that would address the scarcities that trigger high prices during the lean period.”
Maize is an important crop to the country’s economy because as part of food, it contributes about 53 percent to the consumer price index, an aggregate basket of consumer goods and services for computing inflation.
This means the rise as well as the drop in maize prices affects the direction of inflation, which is the general rise in the prices of goods and services.
