Maize purchases cost Admarc K22.4bn

State produce trader Agricultural Development and Marketing Corporation (Admarc) says it has spent K22.4 billion to locally source about 100 000 tonnes of maize which it has dispatched to its depots.

The total expenditure on maize purchases represents an increase of about K20 billion from last year when Admarc bought 51 000 tonnes of maize at K2.3 billion.

Briefing journalists in Blantyre last evening, Admarc chief executive officer (CEO) Foster Mulumbe said this year Admarc wants to ensure sufficient stock availability in its depots.

But he said the K22.4 billion does not take into account other expenditures such as transport and fumigation.

Mulumbe said by November, the corporation will have additional maize in excess of 300 000 tonnes bought from Zambia, Mexico, Romania and Brazil.

He said: “Last year, we only sourced about 21 000 tonnes of maize locally while 30 000 was bought from abroad, but toddy we already have over 100 000 tonnes which we have acquired locally.

“This year, I am confident we have prepared very well in as far as maize operations are concerned and there is no need for the public to panic.”

Admarc opened its markets on Monday with no scramble for maize pegged at K250 per kilogramme (kg) or K12 500 per 50kg bag.

The new prices followed a directive by President Peter Mutharika last week Friday that the price be adjusted from K110 which it was selling last year.

Mulumbe said currently Admarc markets have stocks amounting 46 000 tonnes with about 54 000 tonnes available in central hoarding markets across the country.

The corporation has also opened about 1 000 extra selling depots across the country to ensure that the grain is easily accessed particularly in the rural areas.

Commenting on the price which is deemed to be on the higher side as compared to the ones offered by vendors, Mulumbe said there was nothing they could do because they are selling at the same price they were buying from farmers.

Malawi is experiencing one of its worst hunger situations in recent years because of last year’s drought that resulted in about 6.5 million people requiring humanitarian assistance, but Mulumbe hinted that Admarc has enough maize to last the entire lean period.

Admarc said it has borrowed the money for maize purchases from two local commercial banks. n