Malawi farmers urged to use AHCX in selling produce

Malawi’s Auction Holdings Commodities Exchange (AHCX) has commended the Malawi government for advising farmers to use commodity exchanges in the selling of their crops as one way of fetching better prices as well as getting access to finance using their produce as collateral.

Thom Khanje, AHCX Communications Manager
Thom Khanje, AHCX Communications Manager
AHCX is a transparent and internationally compliant trading platform for commodities in Malawi.
AHCX is a transparent and internationally compliant trading platform for commodities in Malawi.

Ministry of Agriculture, Irrigation and Water Development and the Ministry of Industry, Trade and Tourism said in a joint statement issued in Lilongwe on Thursday that farmers should sell their produce using structured market systems such as commodity exchanges and patronise warehouse receipt services offered by such market platforms.

Commenting on the development, AHCX communications manager Thom Khanje, said  it is pleasing to note that the government is encouraging farmers to use the commodity exchange in the selling of their produce as that is key to protecting farmers from exploitation by vendors and other traders.

“By selling commodities through the commodities exchange, farmers get the best prices prevailing on the market as registered buyers compete openly on the market through an open outcry system that ensures that commodities are bought at a price acceptable to both the buyer and the seller through a competitive and transparent system,” said Khanje.

He said through the commodities exchange, farmers are also able to get loans from banks even if their produce has not been bought immediately at the exchange.

“All the farmer needs is to bring their commodity to the AHCX warehouse where they will be given a warehouse receipt as proof of deposit of commodity in our warehouse.

“And where the farmer is not able to immediately sell the produce because they are not happy with prices or buyers are not readily available, they can still access cash from the banks using their commodity in the AHCX warehouse as collateral,” said Khanje.

AHCX is Malawi’s biggest commodity exchange with 17 warehouses spread across the country at  Chitipa  at Lufita, Karonga ADMARC compound, Rumphi at Bwengu, Mzuzu ADMARC compound, Mzimba at Jenda, Kasungu Boma, Kasungu at Chatoloma, Dowa at Mponela ADMARC compound, Ntchisi boma, Mchinji at Matutu, Lilongwe at Chilambula , Dedza  at Chimbiya, Balaka ADMARC Compound, Limbe -AHL Complex,  Luchenza, Mulanje at Muloza and Machinga at Namwera.

In the statement, the government has also announced other measures aimed at bringing sanity in the produce market and these include the requirement for all buyers of agricultural produce to obtain permits from the Ministry of Agriculture, Irrigation and Water Development in line with the Agricultural General Purposes Act 1987.

The traders to be given the permits would be expected to be holders of licences from the Ministry of Industry, Trade and Tourism – if they are non-Malawians or from local councils if they are Malawi citizens. They are also expected to use scales assized and certified by the Malawi Bureau of Standards (MBS) and register with the Malawi Revenue Authority.

Meanwhile, buying crops while still in the field is now prohibited.

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Mchikumbe number 1
Mchikumbe number 1
7 years ago

Thumbs up AHCX.

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