M
inistry of Trade says it plans to lift the maize export ban to allow traders to sell the staple grain to neighbouring countries.
The decision follows a request by Grain Traders and Processors Association of Malawi who have been asking government to lift the ban due to the availability of maize which the local market cannot absorb. The ban was imposed in 2017.
In a written response on Monday, Minister of Trade Sosten Gwengwe confirmed that government will soon open up maize exports using the export mandates.
Export mandates are used where no commodity is exported unless it goes through a structured market. Currently, export mandates are in place for two commodities, namely tea and tobacco.
Said Gwengwe: “We are waiting for the gazette notice to come out anytime from now.
“We are not only targeting maize but also a few other cash crops whose exports have been inorganised in the past.”
He said by using export mandates, government wants to ensure that foreign exchange is repatriated after the exports.
Grain Traders and Processors Association of Malawi chairperson Grace Mijiga-Mhango in an interview on Monday said they applied to government for consideration to lift the export ban.
She observed that apart from Agricultural Development and Marketing Corporation (Admarc) coming on the market, private grain traders also have huge volumes of maize which cannot be absorbed by the local market.
While Ifpri found that on average, maize price is at K205 per kilogramme (kg), Mhango said one kg is being sold at K160 as the highest retail price while the lowest price is at K140.
Explaning the huge volumes of maize, she said that last year only Admarc and National Food Reserve Agency (NFRA) bought maize while some non-governmental organisations that buy maize for relief purposes did not participate due to the Covid-19 pandemic restrictions.
“Cumulatively, we have over 30 000 metric tonnes [MT] which will rot if we will not be allowed to export,” said Mhango.
She said the implication of denying them permission to export maize will render its production less attractive in future given this season’s anticipated bumper yield owing to K160.2 billion investment in Affordable Input Programme and good rains.
State produce trader Admarc procured 50 000 MT of maize last year at K200 per kg and had approximately 106 000 MT in stock by mid-December 2020.
