Reserve Bank of Malawi governor blames high maize prices on panic buying

Reserve Bank of Malawi (RBM) governor Daliso Kabambe has blamed the high maize prices to panic buying, saying the grain scarcity rumour mongers are pushing the prices up.

He said in addition, some maize traders are buying the maize in large quantities and hoarding it in anticipation of maize scarcity so that they could in return sell it at very high prices.

Kabambe said if unchecked, this can trigger high inflation rate, saying food is one of the great catalysts of inflation.

“However, the ministry of Agriculture, Irrigation and Water Development says there is enough maize stocks in state grain reserves so there is no need to panic,” said Kabambe.

Secretary for the ministry of Agriculture, Irrigation and Water Development Grey Nyandule Phiri said the country has more than enough maize stocks.

“Some traders are buying the maize to sell in neighboring countries of Zambia, Mozambique and Zimbabwe which have maize shortages,” said Phiri.

He said some parts of the country were affected by floods and drought but said this did not affect the overall food production across the country.

The country harvested more than 3 million tonnes of maize this year as opposed to last year’s maize production of 2.6 million tonnes.

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