Africa-Press – Malawi. Minister of Agriculture Sam Kawale says 50,000 metric tonnes of maize which was under collateral at NBS Bank is now back in the hands of government following the intervention of donors.
Government-owned Agricultural Development and Marketing Corporation (Admarc) used maize to secure loans from commercial. However, Admarc has been struggling to repay the loans and since the maize was under collateral, the maize could not be sold.
Yesterday, Kawale told Parliament that World Bank has paid NBS Bank and the 50,000 metric tonnes of maize has been released to the Strategic Grain Reserves from where the maize will be distributed to Admarc depots.
Kawale added that government with further assistance from development partners is working on redeeming maize under another commercial bank, CDH Bank. According to Kawale, Admarc currently has 50,000 metric tonnes of maize fit consumption and there is 10 000 metric tonnes which went bad.
Kawale also revealed that K400million has been allocated to transport the maize to Admarc depots so that people are able to buy the maize. However, government is rationing the maize and one individual will be allowed to buy maximum of 25kgs at K300 per kg.
In Parliament yesterday, Chitipa South legislator Wellan Chilenga expressed concern that Admarc depots are still closed despite government promising to reopen the depots. He added that people in the country are facing hunger and struggling to access maize.
Mulanje Bale MP Victor Musowa demanded the Minister of Agriculture to address the issue saying hunger has affected the whole country. Meanwhile, Kawale has said he will present a ministerial statement on Admarc.
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