During the mid-year budget statement, Finance Minister, Joseph Mwanamvekha, outlined that funds are available for Admarc to go onto the market on time, hence the State-owned grain trader must buy maize on time, to avoid unscrupulous traders taking advantage of the situation to rip off growers.

According to Mwanamvekha, resources for maize purchase have been maintained at K10 billion of which K3.0 billion was spent during the first half. “A total of K9.2 billion has been earmarked for maize purchase during the second half comprising K7.0 billion budget balance and K2.2 billion realised from Admarc maize sales. These funds, Madam Speaker, will be used to start early purchasing of maize from smallholder farmers.” Mwanamveka told the August House.

The development follows after Grant Traders Association of Malawi (GTAM) acknowledged there is a food shortage in the country, but the situation is not as bad as it is portrayed, only that government does not act on traders who buy maize from farmers then hoard it. GTAM president, Grace Mijiga Mhango, suspects that maize is available, but traders bought all the maize from farmers, and hoarded it for longer than necessary. Mhango emphasized that government has failed by failing to enforce provisions of the Special Crops Act.

Mwanamvekha outlined that Government will promote structured markets through commodity exchanges, warehousing systems and establishment of cooperatives, while implementing structures to curb illegal maize exports.