Maize farmers in Malawi face potential losses estimated between K40 billion to K48 billion as delays in government funding continue to stall official grain purchases.
The Treasury has yet to release about K120 billion meant for the National Food Reserve Agency and the Agricultural Development and Marketing Corporation, which are expected to buy large volumes of maize from local farmers.
In the absence of state intervention, informal traders have taken advantage of the gap, offering as low as K500 per kilogramme, far below the recommended minimum price of K900.
Government spokesperson Williams Banda said funding processes had been signalled, but official maize purchasing has yet to begin through the state agencies.
Agricultural policy expert Tamani Nkhono-Mvula warned that the delays are forcing farmers into distress sales, weakening efforts to commercialise maize farming and threatening future production.
The National Smallholder Farmers Association of Malawi, through chief executive officer Betty Chinyamunyamu, said traders buying below the official price are undermining both regulations and farmers’ ability to recover production costs.
She further cautioned that continued low prices could reduce investment in inputs such as fertiliser and improved seed, potentially shrinking maize production in coming seasons.
Meanwhile, NFRA Chief Executive Officer Bruce Munthali has said the agency plans to boost national maize reserves, as concerns grow over food security, inflation, and the stability of the grain market.
