The Farmers Union of Malawi (FUM) has strongly criticised the National Food Reserve Agency (NFRA) for lowering the maize buying price to a level they say is unfair, illegal and harmful to farmers.
Maize traders push up the price
On Monday, NFRA announced it had reduced the maize purchase price from K55,000 to K42,000 per 50kg bag, saying the decision was based on market research.
However, farmers say the new price goes against government policy and will result in heavy losses.
Last year, government set the minimum farmgate price for maize at K1,050 per kilogramme, which translates to K52,500 per 50kg bag. This means NFRA is now buying maize at K10,500 below the official minimum price.
FUM Chief Executive Officer Jacob Nyirongo said this makes no economic sense for farmers who have already invested heavily in production.
“When government announces farmgate prices, all buyers are expected to follow them. Farmers who still have maize have already incurred high costs. We expected NFRA to offer prices at least equal to the minimum farmgate price,” Nyirongo said.
He warned that the price cut could push farmers and traders to smuggle maize into neighbouring countries where prices are better.
“This is a serious threat to national food security,” he said.
FUM President Maness Nkhata described the decision as both exploitative and unlawful.
“We are very sad because these prices take advantage of farmers and go against existing policy,” she said.
Agriculture policy expert Horace Phiri said the move shows inconsistency in government policy.
“Every year government announces farmgate prices, but now its own agency is offering lower prices. This discourages traders and farmers and may collapse the maize market in the next season,” Phiri said.
Grain Traders Association of Malawi President Grace Mijiga Mhango also criticised NFRA, saying the timing was especially bad.
“This is happening when farmers are preparing for winter cropping. With high production costs, this decision is very discouraging and sends the wrong signal to the market,” she said.
However, economist Milward Tobias defended NFRA, arguing that food policy must balance farmer profits with consumer needs.
“Public policy must ensure food is available and affordable. Prices cannot be set only based on production costs,” Tobias said.
He added that maize production is still profitable even at K42,000 per bag.
“On average, a smallholder farmer produces about 50 bags per hectare. At K42,000 per bag, that is K2.1 million per hectare,” he said.
But farmers argue that this calculation ignores the rising cost of inputs. A survey shows fertiliser alone now costs between K148,000 and K196,000 per 50kg bag, making maize farming far more expensive than before.
Key Differences Between Farmers and NFRA
The dispute boils down to three main issues:
Price:
Farmers want NFRA to respect the official minimum farmgate price of K52,500 per bag. NFRA says K42,000 reflects current market conditions.
Policy vs Market:
Farmers rely on government policy for protection. NFRA relies on market research and demand-supply dynamics.
Food security view:
Farmers believe low prices will lead to smuggling and reduce local supply. NFRA and its supporters believe lower prices help keep maize affordable for consumers.
In short, farmers see the price cut as exploitation and policy betrayal, while NFRA sees it as economic realism. The clash exposes deeper tensions in Malawi’s food system — between protecting producers and feeding the nation at affordable prices.
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4 replies on “Farmers Reject NFRA Maize Price Cut as Dispute Deepens”
Big looses by far, you can’t get anything from that, fertilizer super expensive, it doesn’t make sense, next year am not planting maize,
No no no.. Farmers are wrong. They were already told in the past, some months back; to sell the maize they kept because government is about to bring in a cheaper stock. That was government trying to protect farmers’ capital gain. But Alas, farmers refused to sell their merchandise and hoarded it until now. So government has brought the cheap maize it was talking about. And we see the same farmers saying government is unfair. Nope! A big No
What an economist, who sticks to theory that does not match with the reality? Believably when setting up a minimum price all those factors are taken into consideration and most importantly it is aimed at protecting farmers from exploitations. The problem is that government thinks it is punishing the traders and doing good to the consumers which is not the case. How government is managing expectations and speculations about maize price will impoverish the farmer even more. As it is , definately traders will buy maize at kess that 20,000 for them to make a profit while selling at around that projected price.
The calculations which farmers are using on maizefarming are misleading. The price of 42 000 is equally fair. Balance production pay out and consumer needs. Don’t just focus on calculated profits after sales. Those who feels are betrayed , they have the right not to sale and look for alternative markets
Big looses by far, you can’t get anything from that, fertilizer super expensive, it doesn’t make sense, next year am not planting maize,
No no no.. Farmers are wrong. They were already told in the past, some months back; to sell the maize they kept because government is about to bring in a cheaper stock. That was government trying to protect farmers’ capital gain. But Alas, farmers refused to sell their merchandise and hoarded it until now. So government has brought the cheap maize it was talking about. And we see the same farmers saying government is unfair. Nope! A big No
What an economist, who sticks to theory that does not match with the reality? Believably when setting up a minimum price all those factors are taken into consideration and most importantly it is aimed at protecting farmers from exploitations. The problem is that government thinks it is punishing the traders and doing good to the consumers which is not the case. How government is managing expectations and speculations about maize price will impoverish the farmer even more. As it is , definately traders will buy maize at kess that 20,000 for them to make a profit while selling at around that projected price.
The calculations which farmers are using on maizefarming are misleading. The price of 42 000 is equally fair. Balance production pay out and consumer needs. Don’t just focus on calculated profits after sales. Those who feels are betrayed , they have the right not to sale and look for alternative markets