Malawi not ready to fight hunger: Gov’t gives Admarc less than 10% of maize buying budget

2 hours ago

Malawi24 Reporter

Malawi’s ability to cushion a potential food crisis is facing fresh scrutiny after government released just K5 billion to Admarc despite allocating K60 billion for maize purchases in this year’s budget.

The funding represents barely 10 percent of the amount earmarked for maize buying, raising questions about where the rest of the money is and whether Admarc can protect farmers from exploitative vendors while helping rebuild grain reserves ahead of growing food security concerns.

The State produce trader has announced it will start buying maize across the country from today at the government-approved price of K900 per kilogramme. But with just a fraction of its budget released, questions are already emerging about how long the buying exercise can be sustained; or which money the institution will use to buy maize.

Admarc spokesperson Theresa Chapulapula told one of the local print media, The Nation, that the K5 billion tranche is “tte first tranche of funding for the 2026/27 marketing season.”

The corporation plans to purchase 65 000 metric tonnes of maize this year, but further buying will depend on whether government releases additional funding.

The development has sparked concerns among agriculture experts and grain traders who fear that limited financing could leave farmers vulnerable to vendors currently buying maize for as little as K600 per kilogramme, well below the official minimum farm-gate price.

The funding gap becomes even more striking when compared to Admarc’s own estimates. Earlier this year, ADMARC’s CEO, Ben Botolo, said the institution would require K144 billion to operate efficiently during the 2026/27 financial year.

With only K60 billion allocated in the national budget and just K5 billion released so far, Admarc remains far below its funding requirements.

The institution is also carrying debt burdens. Botolo previously disclosed that Admarc owes CDH Bank about K39.5 billion, limiting its ability to access additional financing.

As the government braces for another uncertain agricultural season, Admarc faces the daunting task of stabilising maize markets and protecting farmers with less than 10 percent of the allocated budget. This allocation raises serious doubts about the institution’s ability to fulfil its commitment to “providing reliable agricultural markets and contributing to national food security,” as Botolo remarked to The Nation.