Maize prices tumble 33%

The country’s maize prices have begun to soften, falling 33 percent from an all-time high of K15,000 per 50 kg bag to around K10,000 per bag, The Daily Times has established. The fall in maize prices in mainly due to the start of harvesting in a number of Southern Region districts.

A visit to produce markets in the commercial capital, Blantyre revealed that vendors were selling the commodity at an average price of K200 per kg down from K300 per kg.

The visit also revealed that most of the maize being sold is from this year’s harvest.

Charles Chilenga, a maize vendor at Nancholi in Blantyre described the pattern as normal, saying maize prices normally start falling from the end of March every year.

“There is an increase in supply of maize on the market especially from Mulanje and Thyolo where harvesting has started. We expect the prices to soften even further when harvesting reaches its peak,” said Chilenga.

Another vendor at Baluti in the commercial capital, Mary Chalusa said although the prices have started declining expectations are that the decline won’t be for long considering the poor harvest anticipated.

“As we are all aware, we are not expecting improved harvest this year due to the poor rains received. So we don’t expect the softer prices to remain for long,” said Chalusa.

The fall in maize prices should be good news for authorities as it will help in bringing down inflation which was pegged at 23.4 percent in February.

A fall in inflation could help the monetary authorities to consider bringing down the policy rate, a move which may see commercial banks pulling down their base lending rates currently hovering around 38.5 percent.

According to the Ministry of Agriculture, Malawi is expected to realize a total of 2.719 million metric tones of maize this year.

This year’s harvest is 2 percent shy of the 2.77 million metric tones realized last year but is 0.21 million metric tones more than the 2.5 million tone annual maize requirement.

The ministry said rice production is projected to slightly increase by 1.4 percent.