Malawi maize prices up 18 percent
Maize average prices in Malawi jumped by about 18 percent to K115 (about $0.34) per kg in August from K97.70 (about $0.30) in July, indicates the Ministry of Agriculture and Food Security data.
The ministry’s data indicates that maize prices have been rising for the past three months selling at an average K85.23 in May, K86.83 in June, K97.71 per kg in July and rose to K115 per kg in August.
The August 2013 price is 106 percent higher than K55.90 per kg; a price at which the staple was selling in the same month last year.
The price increase poses a danger to low- income earners who will have problems to access maize which is a staple food to many Malawians.
The price increase may also induce a general rise in prices, inflation which is calculated using the Consumer Price Index of which 50.2 percent is composed of food and non-alcoholic drinks.
A rise in inflation rate may, therefore, force the Reserve Bank of Malawi (RBM) to uphold its strong monetary policy stance to rein in the general rise in prices.
Although the price rise may be good news to farmers, the Centre for Social Concern (CfSC) in a press statement released earlier noted that rural farmers have no access to markets and vendors take advantage by buying crop produce at low prices and selling in urban centres at higher prices.
CfSC noted that due to poor markets in rural areas, they have turned into a haven for vendors where the traders make a lot of money by buying at low farm gate prices during harvest period and sell them to profitable markets at attractive prices.
However, Ministry of Agriculture and Food Security said government is implementing programmes to enhance access to produce markets and information on agriculture commodity exchange through their extension workers.
The Famine Early Warning Systems Network (Fewsnet) August 2013 report notes that average national maize prices in July 2013 were 152 percent above the five-year average for July.
The report adds that the month-to-month price increase from June to July was 14 percent this year compared to five percent on average last year.
Fewsnet, however, points out that the current higher than normal maize price increase is mainly attributed to the lingering effects of last year’s currency devaluation and subsequent depreciation, the transfer of generally higher farmer production costs to the consumer.
Fewsnet further projects that due to the localised production shocks in surplus and deficit areas, reduced food consumption levels and high maize prices, means that poor households are likely to be stressed.
