Business and Finance

Maize prices soar 64.5% since April

Maize prices soar 64.5% since April

Prices of maize, Malawi’s staple food, went up by an average 64.5 percent between April and July 2024, a snap check by Times Business reveals.

Our study shows that maize is cheapest in the Central Region’s city of Lilongwe, now selling at a maximum of K38, 000 per 50 kilogramme (kg) bag from K20, 000 in April. This represents a 90 percent rise.

In Mzuzu, prices of the commodity have reached K13, 500 a tin or K40, 500 a 50kg bag, up from K7, 500 a tin or K22, 500 per 50 kg bag, representing an 80 percent jump in the price.

In Blantyre, the price ranges from K40, 000 to K45, 000 per 50kg bag from K30, 000. This represents a 33 to 50 percent jump.

In Zomba, maize prices went up by 38 percent from K32, 500 per 50kg bag in April to K45, 000.

Bertha Chikadza

Economics Association of Malawi President Bertha Chikadza said the rise in maize prices has exerted pressure on food inflation.

“It is not surprising that maize prices have soared between April and July due to the food shortages coupled with rather minimal redistribution of maize in the country.

“This has exerted additional pressure on food prices to the extent that, against seasonal expectations, food inflation has gone up from April to July,” Chikadza said.

She added that the outlook looks gloomy as food inflation, especially maize prices, will remain elevated, meaning that inflation in general will also remain high throughout the year.

Civil Society Agriculture Network Chairperson Herbert Chagona said low maize output has contributed to the rise in maize prices.

“Higher production costs have been passed on to consumers, contributing to the overall increase in maize prices.

“We experienced erratic weather patterns earlier this year, including prolonged dry spells in some regions and heavy rains in others. These conditions have adversely affected maize production, leading to reduced yields and lower supply,” Chagona said.

Economist Marvin Banda said elevated food prices would exert more pressure on the consumer price index.

He urged the government to channel more resources towards maize procurement from other sources and flood the market.