Malawi farmers criticize NFRA over reduced maize buying price
Farmers say the new price goes against government policy and will result in heavy losses.
MALAWI – The Farmers Union of Malawi (FUM) has mounted a vigorous challenge against the National Food Reserve Agency (NFRA) after it slashed the maize purchase price from MWK 55,000 (US$31.66) to MWK 42,000 (US$24.15) per 50 kg bag, triggering intense debate across Malawi’s agricultural sector.
Government policy, set last year, established the minimum farmgate price at MWK 1,050 per kilogram which equates to MWK 52,500 (US$30.20) for a 50 kg bag.
With the new prices, FUM says NFRA’s reduction of MK10,500 (US$6.03) below the official floor is not just economically damaging, but also inconsistent with statutory pricing guidelines.
FUM Chief Executive Officer Jacob Nyirongo said this makes no economic sense for farmers who have already invested heavily in production.
“When government announces farmgate prices, all buyers are expected to follow them. Farmers who still have maize have already incurred high costs. We expected NFRA to offer prices at least equal to the minimum farmgate price,” Nyirongo said.
He warned that the price cut could push farmers and traders to smuggle maize into neighbouring countries where prices are better.
FUM President Maness Nkhata described the move as exploitative and unlawful, asserting that it violates existing agricultural policy and undermines farmer confidence.
“We are very sad because these prices take advantage of farmers and go against existing policy,” she said.
Agriculture policy expert Horace Phiri said the move shows inconsistency in government policy.
“Every year government announces farmgate prices, but now its own agency is offering lower prices. This discourages traders and farmers and may collapse the maize market in the next season,” Phiri said.
The Grain Traders Association of Malawi, led by President Grace Mijiga Mhango, echoed these concerns, arguing the timing of the price reduction sends the wrong signal into the grain market when production costs are already high and financing is tight.
By contrast, economist Milward Tobias defended the NFRA’s position, saying that food policy must strike a balance between producer income and consumer affordability.
Tobias noted that maize production could remain profitable even at K42,000 per bag, estimating that a smallholder’s yield of 50 bags per hectare could still generate around K2.1 million (US$1,207).
Farmers, however, say this calculation fails to account for steep input prices, with fertiliser alone now runs between MWK 148,000 and MWK 196,000 (US$85–US$113) per 50 kg bag, according to recent surveys.
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