Govt injects K100bn into maize purchases

Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha has announced injection of K100 billion into maize purchases to strengthen the country’s security ahead of a forecast El Niño weather pattern.

But the National Food Reserve Agency (NFRA) said yesterday that the country will still fall nearly 47 000 metric tonnes (MT) short of the minimum strategic grain reserves (SGR).

Mwanamvekha yesterday told Parliament in Lilongwe yesterday that Treasury had released K100 billion to NFRA to accelerate maize procurement, saying government was determined to build sufficient stocks to cushion the country against possible food shortages.

“I want to assure the august House that as we speak today, NFRA has its own maize, we also have maize from Zambia and we have given K100 billion to NFRA to buy more maize,” he said.

The minister said the Public Procurement and Disposal of Assets Authority (PPDA) had already cleared NFRA to proceed with procurement after completing the tender process.

However, the minister did not explain why Treasury had released K100 billion when the 2026/27 National Budget allocated K60 billion to NFRA for maize purchases. Efforts to seek clarification after the parliamentary sitting were unsuccessful.

Shortly after the minister’s statement, NFRA chief executive officer Bruce Munthali held a press briefing where he said the agency has so far accessed K20 billion and expected deliveries of the first consignments to begin today after awarding contracts to 185 suppliers.

He said the K100 billion would finance the purchase of 108 000MT of maize at the government-approved farm-gate price of K900 per kilogramme.

“Following a comprehensive evaluation process, PPDA granted its ‘No Objection’ to the proposed awards. I am, therefore, pleased to announce that 185 supply contracts have now been awarded to successful suppliers,” said Munthali.

Munthali said the planned purchases, together with NFRA’s existing 62 000MT in stock, would raise the country’s strategic grain reserve to about 170 000MT.

But he acknowledged that this would still be well below the recommended minimum reserve of 217 000MT, leaving a deficit of about 47 000MT.

He said government was, therefore, mobilising additional resources and engaging development partners to close the gap, particularly as forecasts point to possible El Niño-induced disruptions to agricultural production.

The funding announcement came after Dedza Mphudzi legislator Emmanuel Mawindo questioned delays by both NFRA and Admarc in buying maize from farmers, warning that the slow pace had allowed traders to exploit farmers while encouraging maize smuggling into neighbouring Mozambique and Zambia, where prices are higher.

In her response, Minister of Agriculture, Irrigation and Water Development Roza Mbilizi said Admarc had already started buying maize in areas where harvesting was completed earlier but had not yet expanded nationwide because of cash flow constraints.

She said Admarc had been allocated K60 billion for crop purchases and another K60 billion for recapitalisation, with the funds also earmarked for buying rice, pigeon peas, cotton and other crops.

“It is not just K5 billion that they have received. As government we are providing resources for procurement of maize and other crops,” said Mbilizi.

However, stakeholders have warned that delays in government procurement had already weakened both farmer incomes and national food security.

Farmers Union of Malawi chief executive officer Jacob Nyirongo said many farmers had sold their maize to middlemen because government buyers were slow to enter the market.

Grain Traders Association of Malawi president Grace Mijiga-Mhango also criticised the slow pace of procurement, warning that further delays would increase costs and undermine the country’s preparedness for a possible food crisis.

She also called for greater transparency in the procurement process, saying uncertainty about government purchases had discouraged private traders from importing maize to supplement local supplies.

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