Admarc Enters Maize Market With Just K5 Billion of K60 Billion Budget

The government has released only K5 billion to Admarc—barely eight percent of its K60 billion maize-buying budget—raising fresh doubts about the State produce trader’s ability to protect farmers from exploitative vendors despite announcing the start of maize purchases nationwide.

The funding shortfall means Admarc is entering the market with limited firepower at a time when thousands of farmers are desperate for a reliable buyer and fair prices for their harvests.

Agricultural Development and Marketing Corporation (Admarc) has announced that it will start buying maize from farmers at its depots across the country from tomorrow at the government-approved price of K900 per kilogramme.

However, the move comes months after farmers began harvesting and amid concerns that the agency lacks sufficient resources to sustain purchases throughout the marketing season.

Admarc chief executive officer Ben Botolo said the corporation has put in place logistical arrangements to ensure smooth and transparent operations and urged farmers to sell through official depots.

“The company has put in place the necessary logistical arrangements to facilitate smooth and transparent purchasing operations during the 2026/2027 marketing season,” said Botolo.

He advised farmers to bring properly dried and clean maize that meets the required quality standards.

But behind the announcement lies a harsh financial reality.

Admarc spokesperson Theresa Chapulapula confirmed that the K5 billion is only the first tranche released by government towards maize purchases. She said the corporation plans to buy 65 000 metric tonnes of maize during the 2026/27 financial year, but future purchases will largely depend on whether Treasury releases additional funding.

The revelation has sparked concern among agricultural stakeholders who fear the agency may struggle to compete effectively in the market if financing remains constrained.

Grain Traders Association of Malawi president Grace Mijiga-Mhango welcomed Admarc’s entry but warned that the allocated resources are too small to make a significant impact.

“The resources allocated are too little for the government agency to purchase maize on the market. Coming at a time when its entry into the market was expected earlier, we hope it will quickly mobilise additional resources and continue buying the commodity so that farmers are not exploited,” she said.

Agricultural experts argue that Admarc’s delayed entry has already left many farmers vulnerable to vendors who are purchasing maize at prices far below the officially gazetted minimum farm-gate price.

Director of the Centre for Agriculture Research and Development at Lilongwe University of Agriculture and Natural Resources, Innocent Pangapanga, described the K5 billion release as a welcome but inadequate intervention.

He noted that some traders are buying maize for as little as K600 per kilogramme, significantly below the approved minimum price, thereby reducing farmers’ earnings.

Pangapanga warned that government cannot afford to move slowly given forecasts of an El Niño-induced food security crisis during the 2026/27 season.

“Given the looming threat of the upcoming 2026/27 El Niño and the heightened risk of food insecurity, the government should urgently scale up financing to both Admarc and the National Food Reserve Agency to aggressively procure maize, support farmer incomes, stabilise markets and rebuild the Strategic Grain Reserve before supply conditions deteriorate,” he said.

Agriculture policy expert Leonard Chimwaza said Admarc’s presence could help restore sanity to commodity markets where many vendors have ignored minimum farm-gate prices.

He said farmers are looking beyond promises and expect uninterrupted purchases, corruption-free operations and equal access to markets.

“Many vendors were offering low prices across commodity markets in Malawi. Therefore, the entry of a competitor offering prices above the minimum farm-gate price is a positive development. For producers, this is good news because it guarantees better prices,” said Chimwaza.

Mwapata Institute executive director William Chadza also described Admarc’s entry as late and stressed the need for a reliable flow of funds if the agency is to remain active in the market.

The current funding challenge is only a fraction of Admarc’s wider financial struggles.

In March this year, Botolo disclosed that the institution required K144 billion to operate efficiently during the 2026/27 fiscal year.

With government allocating only K60 billion in the national budget, Admarc projected a financing gap of more than K80 billion and anticipated borrowing from commercial banks at an estimated interest cost of K10 billion.

Botolo also appealed for a government bailout to clear K39.5 billion in outstanding loans owed to CDH Bank, arguing that the debt burden continues to undermine the institution’s ability to access fresh financing.

The latest release also mirrors last year’s experience when Admarc received only K5.5 billion out of an approved allocation of K53.7 billion. The delayed and partial funding forced the institution into a late market entry and severely limited its commodity purchases.

As maize buying begins tomorrow, the key question remains whether Treasury will release the remaining K55 billion in time. Without substantial additional funding, analysts warn that Admarc’s return to the market could amount to little more than a symbolic intervention in a season where farmers need a strong and reliable buyer more than ever.

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