While the private sector will be responsible for the purchase, financing, storage, maintenance and supply of strategic wheat reserves, the government will retain a regulatory, oversight and strategic control role.
The government justifies the move with the “need to create a transparent mechanism for the import of rice and wheat, and to consequently eliminate the illegal export of foreign currency.
The changes include the termination of one license and the issuance of new licenses covering primary elevator and grain dealer operations.
The Monkey Bay incident has reignited debate around Finance Minister Joseph Mwanamvekha’s recent projection that maize prices could fall to below K20,000 per 50kg bag (US$ 12) by August this year.
Between January and June, the country will require approximately 750,000 MT of rice, yet projected domestic production for the same period stands at 110,000MT.