Malawi faces soaring maize prices amid supply shortages

MALAWI – Consumers in Malawi are expressing alarm as maize prices continue to escalate, with a 50-kilogram bag of the staple grain now selling for up to MWK 65,000 (US$65) in some markets.

Spot checks and data from the International Food Policy Research Institute (IFPRI) and the Famine Early Warning Systems Network (FEWS NET) reveal that consumers are purchasing maize at MWK 1,300 per kilogram, significantly higher than the MWK 790 per kilogram (MWK 39,500 per 50kg bag) offered at Agricultural Development and Marketing Corporation (ADMARC) outlets.

According   to experts, this price surge poses a substantial challenge to low-income workers earning the government-set minimum wage of MWK 90,000 per month (US$90), especially as the average cost of living for a family of six hovers around MWK 540,000 (US$540).

Grace Mijiga Mhango, president of the Grain Traders Association of Malawi, attributes the rising prices to insufficient domestic maize supplies.

She notes that traders have been importing maize from Mozambique and Tanzania since July; however, Mozambique’s stocks have dwindled, and Tanzanian maize has become costlier due to volatile exchange rates.

FEWS NET data indicates that the National Food Reserve Agency had projected maize prices would rise to MWK 1,000 per kilogram between October 2024 and January 2025, amid inadequate funds to replenish strategic grain reserves.

However, John Kapito, executive director of the Consumers Association of Malawi, expresses concern that the current prices are beyond the purchasing power of many consumers, particularly affecting women and children. He points out that while the government provides free maize to vulnerable families, these distributions are periodic and insufficient to address ongoing hunger challenges.

The rising maize prices have a direct impact on inflation, as maize accounts for about 53.7% of the consumer price index in Malawi.

In 2024, food inflation averaged 41.6%, eroding consumers’ purchasing power. Although the rate dropped to 33.7% in November, year-on-year headline inflation remained high at 27%.

ADMARC spokesperson Theresa Chapulapula recently stated that Malawi anticipates sufficient maize supplies during the lean period, thanks to imports from Tanzania.

She reported that ADMARC has received 10,000 metric tons out of the 36,000 metric tons purchased from farmers and is gradually opening its 240 commercial and 119 social markets based on demand.

On its part, however, the Malawi Vulnerability Assessment Committee Report forecasts an increase in the number of people requiring food aid, from 4.2 million to 5.7 million, during the lean period starting in October 2024.

Additionally, South Africa, a key regional maize producer, has experienced significant price increases. On January 3, 2025, South Africa’s white maize spot price traded around ZAR 6,871 per tonne, up over 50% from the previous year, potentially influencing regional maize markets.

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