Lilongwe, Malawi: Malawi’s state grain trader, Admarc, has made a desperate plea for a substantial funding increase, warning that its current allocation is woefully inadequate to stabilize the nation’s soaring maize prices. The parastatal claims it requires a staggering K300 billion to purchase 250,000 metric tonnes (MT) of maize, a figure fifteen times greater than the government’s proposed K20 billion allocation.
Admarc’s chief executive officer, Daniel Makata, told parliamentary budget cluster committees that the current funding would only enable the purchase of a paltry 17,000 MT, a drop in the ocean compared to the country’s needs. He argued that a substantial stockpile of 250,000 MT would allow Admarc to flood its markets during the lean season, effectively curbing price hikes that have seen a 50kg bag of maize skyrocket to K110,000 in some areas.
“We need a minimum of 250,000 tonnes for us to make maize available in all our 349 markets,” Makata stated, highlighting the critical role Admarc plays in ensuring food security. “If we don’t buy, that means we will have nothing to sell.”
The parliamentary cluster committee, led by co-chairperson Werani Chilenga, has thrown its weight behind Admarc’s demands, advocating for the entire K60 billion allocated for maize purchases in the proposed budget to be directed to Admarc, with an additional K240 billion provided by the Treasury. “Admarc should be capacitated to start buying maize in good time before vendors take advantage of the farmers,” Chilenga urged. “We don’t want a repeat of what happened this year.”
Minister of Agriculture Sam Kawale has also voiced his support for increased funding, affirming that the ministry and Admarc are aligned in their assessment of the situation. However, the Grain Traders Association of Malawi, while acknowledging the inadequacy of the current allocation, suggests a split between Admarc and the National Food Reserve Agency (NFRA), with Admarc receiving 100,000 MT and NFRA 150,000 MT.
“The 250,000 MT should cover both Admarc and NFRA,” said Grace Mijiga Mhango, chairperson of the association. “Unless they want the tonnage for commercial function, otherwise the price stabilisation is a social function and in some way it is subsidized.”
The NFRA itself has requested K150 billion to purchase 105,000 MT for the national strategic grain reserves. With millions of Malawians facing food insecurity, the pressure is mounting on the government to address the funding shortfall and prevent a potential maize crisis. The stakes are high, and the nation awaits a decisive response to avert widespread hunger.
