Admarc faces 18 000 tons maize deficit
State produce trader Agricultural Development and Marketing Corporation (Admarc) says it needs about 18 000 metric tonnes (MT) of maize worth K2 billion ($3,351,870) to avert shortages between now and the next harvest in April 2016.
But Minister of Finance, Economic Planning and Development Goodall Gondwe has said the shortfall will be addressed as government plans to give Admarc the authority to get a commercial loan specifically for the maize purchase.
He said: “Yes, we are aware that Admarc needs more maize to safely carry us through to April and plans are already underway. We realise the challenge this will pose if the funds are not available; hence, our swift move to deal with this before it becomes a problem.”
Admarc chief executive officer Foster Mulumbe also confirmed the deficit, but could not give more details.
However, a status report compiled by Admarc and signed by Mulumbe, which The Nation has seen, shows that Admarc bought over 22 000MT at K2.6 billion ($4,357,430) locally and imported 30 000MT at K2.8 billion ($4,692,620).
Reads the report in part: “Total purchases which were 52 193 metric tons at a cost of K5.4 billion ($9,050,050), the stocks are located at various warehouses in each region in areas that will make restocking to the markets timely for selling.
“As at 17 November 2015, Admarc had 34 434 metric tons of maize in stock and were already spread in the three regions.”
The report said Admarc’s projection for commercial maize requirement starting from December 2015 to April 2016 is 48 000 metric tons.
“We project to require 4 000 metric tons for the remaining period of November 2015 and hence we will start December with a stock balance of 30 000 metric tons of maize. The shortfall is, therefore, 18 000 metric tons to safely carry us through to April 2016.”
Malawi this year recorded a 30 percent drop in maize harvest due to combined effects of drought and floods in some parts of the country, according to the Ministry of Agriculture, Irrigation and Water Development.
The Malawi Vulnerability Assessment Committee reported that due to the reduced harvest, about 2.8 million Malawians in 25 districts face hunger and are in need of humanitarian food aid.
