A new study has challenged the effectiveness of Malawi’s long-standing efforts to stabilise maize prices, arguing that strategic grain reserves, export bans and minimum farmgate prices cannot, on their own, shield consumers and farmers from volatile food markets.
The paper, Strategic Grain Reserves and Maize Price Stabilisation in Malawi: What Policies are Feasible?, authored by Jan Duchoslav and Nicholas Minot of the International Food Policy Research Institute (Ifpri), says the country’s Strategic Grain Reserve (SGR) should be retained, but its role must be aligned with operational realities.
The authors write: “The paper argues that Malawi should retain its strategic grain reserve but calibrate its price-stabilisation mandate to what is operationally feasible, while preserving the reserve’s emergency and safety-net functions.”
The report says while grain reserves can cushion extreme seasonal price swings, their effectiveness is constrained by financing shortages, storage limitations, delays in grain procurement and release, as well as cross-border trade. It also argues that minimum farmgate prices and export restrictions have historically produced limited results because they are difficult to enforce and are often poorly timed.
Commenting on the findings, Mzuzu University agricultural economist Christopher Mbukwa agreed that financing remains one of the biggest constraints because the National Food Reserve Agency (NFRA) operates as a humanitarian institution rather than a commercial enterprise.
“I actually absolutely agree with them that due to a humanitarian responsibility that they have, they fail to recover all the costs and they can’t actually make profit. Therefore, in terms of financing, they have to wait for government to recapitalise them,” he said.
Mbukwa also backed the report’s concerns on storage and porous borders, saying some grain silos have developed structural weaknesses that have reduced storage capacity, while higher maize prices in neighbouring countries continue to encourage informal cross-border trade, undermining efforts to stabilise domestic prices.
However, Mwapata Institute research fellow Christone Nyondo offered a different perspective, arguing that financing and management shortcomings matter more than storage capacity.
“It is not managed effectively. Because if we are serious about it, the government will have to finance it for the reserves to be stocked. And if it is released, it has to be properly timed,” he said.
While agreeing that cross-border trade contributes to price instability, Nyondo said he did not believe storage constraints were a major obstacle. He also questioned the continued reliance on export bans and minimum farmgate prices.
“I think as a country we need to think seriously strategically in terms of what we want to do as a country… rather than relying on the same tools that haven’t worked, but relying on them year in and year out,” he said.
