Admarc secures K62bn for maize purchases
State-produce trader Agricultural Development and Marketing Corporation (Admarc) says it has K62 billion for maize purchases.
The parastatal targets to buy in excess of 1 million metric tonnes (MT), with 2 000MT already purchased since the opening of its markets on Wednesday.
Admarc board director Allan Chiyembekeza, who is also chairperson of the board’s operations committee, told journalists in Blantyre yesterday that the company has received K12 billion from Treasury and secured a K50 billion commercial loan for the exercise.
He said to protect smallholder farmers, Admarc has set up market committees comprising group village head, village development committee chairperson, secretary and a member as well as Admarc market supervisor and security personnel.
Said Chiyembekeza: “We will be buying white maize only in 300 000MT tranches to ensure that all maize is bought at K150 per kilogramme [kg].
“Admarc shall only buy white maize for the current season if it is of good quality and sizeable grain, is free from weevils, discolour, any foreign matters and with moisture of less than 13.5 percent.”
He said formulation of the market committees have been necessitated because Admarc has realised that the market has started late this year compared to the previous year (April 17 2020), so, chances are that traders would be capitalising on the same to sell their maize to Admarc.
To this end, from August 2 to 14 2021 Admarc will buy between one and 40 bags of 50kg maize from farmers while those with 41 to 100 bags will have their maize bought from August 16 to 27 2021.
For those with between 100 and 200 bags will sell their maize from August 29 to September 11 2021 and those with over 200 bags will sell their maize from September 13 2021.
On his part, Admarc general manager Rhino Chiphiko said the company has engaged the Reserve Bank of Malawi to allow some rural banks, where supply of maize is high, handle over K100 million for the purchases, which at the moment is contrary to the central bank’s regulation.
Meanwhile, data from the International Food Policy Research Institute (Ifpri) show that less than 10 percent of farmers received a price equal to or greater than the minimum farm gate price.
In its Malawi Monthly Maize Market Report for June, Ifpri observes that the monthly average retail maize price in June 2021 was K132 per kg, which is 12 percent lower than the government-set minimum farm gate price of 150 per kg.
In an interview yesterday, agricultural policy expert Tamani Nkhono-Mvula said the opening of the market will help protect farmers from getting short-changed on prices.
“However, Admarc should also open satellite depots in hard to reach areas, where farmers are serviced by vendors,” he said.
