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Maize prices start rising

Government has not provided enough money to replenish the silos
Government has not provided enough money to replenish the silos

Maize prices have started rising with official data from the Ministry of Agriculture and Food Security indicating that the staple crop’s price rose 1.4 percent from K85.23 per kilogramme (kg) in May to K86.43 per kg in June.

Experts have, so far, argued speculation is responsible for the jump in price, coming at a time most households are eating from their harvest.

The price of the staple crop prior to June generally declined with maize pegged at K135.11 per kg in March and dropped to K105.79 in April before dropping again to K85.23 per kg in May.

The decline in the price of maize consequently pushed down inflation, currently at 27.9 percent.

However, the price of the staple crop has started to rise apparently due to speculation and political statements.

President Joyce Banda, in her recent political rallies, has been saying that maize prices will be higher this year than last year and Malawians must brace for tougher times.

Last year at the peak of food shortages, a 50 kg bag of maize peaked at as high as K10 000.

But Civil Society Agriculture Network (Cisanet) national coordinator, Tamani Nkhono-Mvula in an interview on Tuesday attributed the rise in maize prices to demand outstripping supply.

“Traders are speculating on maize prices due an apparent food shortage and some traders are actually hoarding their produce. This has resulted in demand being more than supply.

“We should expect a sharp rise in the prices during the lean periods. Government must provide more resources to Admarc [Agriculture Development and Marketing Corporation] and the National Food Reserve Agency [NFRA] to be able to buy enough maize because maize prices are currently competitive on the market,” he said.

Latest findings of the Malawi Vulnerability Assessment Committee (Mvac) report said about 60 000 metric tonnes of maize worth about K7.2 billion is required for relief in the country.

The report notes that a total of 1.5 million people, which is approximately 10 percent of the total population, will face food shortages.

But Mvac adds that the figures may change depending on food situation on the ground.

Mvac projects that maize prices will average K125 per kg (K6 250 for 50 kg bag) during the consumption period and pickup to a maximum of K200 per kg (K10 000 for 50 kg bag) between the peak lean periods of December 2013 and January 2014.

The May 2013 Famine Early Warning System Network (Fewnet) report further notes that the Central and Northern regions will experience food shortages between July and September this year.

Fewsnet noted that the food security situation will likely begin to deteriorate in the July to September period, as some poor households that experienced low crop yields due to dry spells begin to deplete their stocks and run out of cash from crop sales.

Poor households will be stressed in Mangochi, Dedza and Salima, Kasungu, and Lilongwe Plains. Dowa, Ntchisi, Mchinji and Kasungu and Mzimba will also be stressed.

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