Agricultural Development and Marketing Corporation (Admarc) has increased the buying price of maize in its outlets from K650 per kilogramme (kg) to K700 to woo farmers and speed up the staple grain’s purchases.
Admarc chief executive officer Daniel Makata confirmed the increase in an interview on Thursday, saying the price hike is effective June 20 2024.
“We want to accelerate the maize purchases,” he said.
Makata said Admarc has, so far, opened 240 markets nationwide and purchase 6 000 metric tonnes of maize.
The amount of maize purchased represents an outlay of K3.9 billion calculated at K650 per kilogramme.
Admarc started buying maize in May this year after the corporation received funding from the government for purchase of crops, including K22 billion for maize purchase.
The National Food Reserve Agency (NRFA) also received funding from the government and is buying maize at K750 per kg.
Both prices are above the Ministry of Agriculture’s minimum farmgate price of K650 per kg of maize or K32 500 per 50kg bag set by the government in April this year.
Speaking in an interview, Grain Traders Association of Malawi president Grace Mijiga Mhango said the association has noted “the price war for maize” as there is a jump from K650 per kg to between K750 and K780 in Lilongwe, K780 to K800 in Blantyre and K710 to K720 in Mangochi.
She feared that this could encourage maize hoarding as some would want to make a kill when the price moves above the K1 000 per kg mark. n
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