Africa-Press – Malawi. Admarc has reopened some of its maize markets across Malawi, but the price of maize has sharply increased. A kilogramme now costs K1,300, up from K790. This means a 50kg bag now costs K65,000, compared to the old price of K39,500.
This new price is even higher than what many private vendors are charging, as most vendors are selling maize at around K60,000 per 50kg bag. Earlier, the government had promised that Admarc would sell maize at K50,000, which has not happened.
Because of this, many people believe Admarc is now working like a business making profit, instead of helping poor people with affordable food.
Admarc General Manager Dan Makata defended the price increase. He said Admarc cannot sell maize at K790 because the maize they are selling was bought at around K1,300 per kilogramme this time, unlike in the past.
“We are opening markets in places where maize is being sold at between K1,300 and K1,500 per kilogramme, such as Mwanza, Neno and the Lower Shire, to help control prices at K65,000 per 50kg bag,” said Makata.
“In areas where prices are lower, we have not yet opened our markets.”
In Machinga, former Mchiriguza Area Development Committee chairperson Macdonald Wisiki expressed concern, saying people are suffering and wondering where the cheap maize promised by government has gone.
On Likoma Island, where vendors sell maize at K50,000 per bag, resident Damalesi Nyirenda said people are choosing to buy from vendors instead of Admarc.
“With the K15,000 difference, we can still afford milling and buy relish. If vendors can sell at a lower price, why is Admarc more expensive? I thought they all buy maize from the same farmers,” she said.
Consumers Association of Malawi (Cama) Executive Director John Kapito said the main problem is shortage of maize in the country.
“If we had enough maize, people would have choices. Government plans to buy maize from Zambia, and once that maize arrives, prices may go down,” he said.
Agriculture economist Steve Kayira warned that the Admarc price may push vendors to increase their prices too.
“Because Admarc opened late, it bought maize at a high price and is now selling at a high price. Vendors will copy that price, and this will affect the prices of other goods as well, making hunger and poor nutrition worse in many homes,” he said.
Centre for Human Rights and Rehabilitation (CHRR) Executive Director Michael Kaiyatsa agreed. He said Admarc is now becoming a price setter in the wrong way, making life harder instead of easier for poor families.
Minister of Agriculture Roza Fatchi Mbilizi did not respond to questions this week. However, in October, she said maize imports from Zambia would allow government to sell maize at less than K50,000 per 50kg bag.
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