MALAWI – The International Food Policy Research Institute (Ifpri) Malawi Monthly Maize Market Report for August 2024 shows that Malawi continues to face escalating maize prices, making it the highest-priced among its neighboring countries.
The report highlights significant price differences across the region. The report states, “Malawi’s retail maize prices exceeded those in Mozambique, Zambia, South Africa, and Tanzania when using the official exchange rate.”
The data highlighted that a 50-kilogram bag of maize in Malawi goes for as much as K43,500, which equates to approximately US$24.85, based on the official exchange rate of K1,751(US $1).
In comparison, maize prices in neighboring countries are significantly lower. In Zimbabwe, the price for a similar bag is K36,000 (US$20.56), in Mozambique K31,000 (US$17.71), and in South Africa K26,000 (US$14.85). The lowest maize prices in the region were reported in Tanzania, where a 50kg bag costs K19,000 (US$10.85).
The wide price disparity has raised concerns about Malawi’s food security and inflation. The highest maize price in Malawi, K43,500 (US$24.85), was recorded at Lunzu Market in Blantyre, while Karonga District saw the lowest price at K31,800 (US$18.16).
Agriculture policy expert Tamani Nkhono Mvula explained that Malawi’s high maize prices are largely driven by internal factors such as grain hoarding and poor management of the national food reserve, despite other regional countries experiencing similar climatic challenges.
“It is not surprising that maize prices are low in Tanzania because eastern African countries had bumper yields as they did not experience prolonged dry spells,” said Mvula.
According to Mvula, in other countries, strong food reserve systems ensure that maize is released into the market in a timely manner, stabilizing prices. In Malawi, however, some individuals are hoarding grain, exacerbating the problem.
Mvula’s observations are echoed by Farmers Union of Malawi CEO Jacob Nyirongo, who expressed concerns over the economic impact.
He warned that rising maize prices could exacerbate inflation, affect household food security, and divert farmers’ focus away from investing in improved agricultural inputs for the 2024/25 season.
Maize is a significant contributor to Malawi’s economy, contributing 53% to the consumer price index (CPI), a key indicator of inflation. The sharp rise in maize prices directly influences inflation, leading to higher household costs and further pushing more Malawians into food insecurity.
The IFPRI notes that addressing trade barriers and allowing small-scale traders to access surplus maize from neighboring countries, particularly Tanzania, could help alleviate the pressure on local maize prices and improve food security in Malawi.
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