Commodity prices to jump in 2018—AHCX
With the expected limited supply of agricultural commodities on the market due to dry spells, AHL Commodities Exchange (AHCX) says it expects prices to rise thanks to huge demand.
Between December and January, most parts of the country were hit by prolonged dry spells.
In an interview in Lilongwe last week, AHCX communications manager Thom Khanje said a tight market should result in higher prices for most of the commodities, which is a boon for farmers.
are expected to fetch good prices
He said: “As AHCX, we expect the marketing season to be tight taking into account effects of climate change. In view of this, we expect prices to pick up in the coming months; hence, the need for farmers to be patient and clever if they are to get good returns for their crops.
“Good prices will accrue only to farmers who can wait a little bit and sell produce while it is adequately dry through the formal market instead of rushing to sell it to vendors who are always ready to buy at low prices even when moisture content is high.”
Khanje said most farmers are yet to harvest their crops although some have started harvesting early-maturing crops such as sugar beans.
According to Khanje, other grains and legumes such as soya, groundnuts and maize should be ready for the market between May and June.
“Pigeon peas is normally ready for the market in June, although last year’s poor prices may have discouraged production among some farmers. Those who have grown it, especially in the traditional growing areas of Machinga, Zomba, Chiradzulu, Thyolo and Mulanje districts, should expect good harvests because of the late rains which are beneficial for pigeon peas production,” he said.
AHCX and Agricultural Commodity Exchange (ACE) for Africa, provide an organised market system through which a warehouse receipt system enables farmers to access quick cash while waiting for prices to improve.
What a farmer needs to do is to take their commodities for depositing to the warehouse after which they are issued with a warehouse receipt which they can take to the bank to get an advance of up to 80 percent the value of their deposited commodities.
Farmers Union of Malawi (FUM) President Alfred Kapichira Banda said in an interview that selling produce which is not fully dry to vendors will only result in farmers getting poor prices.
“It is not good for farmers to start selling commodities now. They must wait until the crops are fully dry and well matured,” he said.
Farmers, who are eligible to trade at AHCX, are those with 10 bags weighing 50 kilogrammes each of well graded and dried commodities, said Khanje. n
