Last Monday, government devalued the kwacha by 49 percent as part of fulfilling International Monetary Fund (IMF) conditions.
FUM president Felix Jumbe, who welcomed the devaluation of the kwacha from K168 to K250 against the dollar, said most farmers stand to benefit from the development.
Jumbe said: “But most importantly, government through the Ministry of Agriculture should quickly move in and adjust upwards minimum prices of crops such as maize, groundnuts, cotton and others since the kwacha has now lost value.
“As Farmers Union, we are going to come with our own guide prices, but we expect government to lead the way for the benefit of all farmers. Obviously, farm inputs will go up and there will be nothing for farmers if prices are not adjusted upwards.”
Andrea Banga, a cotton farmer from Nsanje, said while the news of the devaluation was welcome, buyers should also reciprocate by raising prices.
In March this year, the Ministry of Agriculture set minimum prices for different crops. The maize price was pegged at K35 per kg, red sorghum at K60 per kg, soya beans at K70 per kg, pure beans at K95 per kg, shelled groundnuts at K85 per kg and unshelled groundnuts at K55 per kg among others.
Paprika, another cash crop that could earn Malawi more foreign exchange, had been pegged at K230 per kg for grade A and K200 per kg for grade B.