President Bingu wa Mutharika, who is also Minister of Agriculture and Food Security, directed last Thursday that government's arm, the Agriculture Development and Marketing Corporation (ADMARC) should be the sole buyer and seller of maize in Malawi.
Following the directive, ADMARC issued a notice saying it will be buying maize at K45 per kg or K2,250 per 50kgs and will sell the commodity at K52 per kg or K2,600 per 50kgs.
The notice signed by permanent secretary in the agriculture and food security ministry, Andrew Daudi, quotes Malawi laws Agriculture Act, Section 3 which empowers the responsible minister to take this kind of step.
“…Dr. Bingu wa Mutharika, in his capacity as minister responsible...has designated the...ADMARC as a sole buyer of maize from smallholder farmers and seller of maize in Malawi with immediate effect,” says Daudi in the notice.
While a lot of Malawians have applauded government's directive, traders have criticised the government of using primitive economic edicts at the expense of entrepreneurship.
“This is totally archaic,” lambasted Malawi Confederation of Chambers of Commerce and Industry Chancellor, Kaferapanjira when asked for comment. He said the president is practising old economics which failed in Russia during its socialism.
He said they have advised traders to ignore the directive and continue buying and selling the commodity.
Grain Traders and Processors Association (GTPA) said the directive poses a challenge to traders that stockpiled the commodity after buying from farmers at a high cost.
“The directive will create [a] shortage of maize in the country because traders will rather keep the maize rather than sell it to ADMARC at a loss,” said Grace Mhango, GTPA spokesperson, who even doubted the parastatal's capacity to buy all the maize available in the country.
However, a Mzuzu-based consumer rights activist, Atusyaye Mwagomba said traders have been getting gluttonous with the high demand for maize in the country and have been hoarding to make ‘filthy' profits at the expense of the poor consumers.
“People have been buying the commodity at much hiked prices for no justifiable reasons and we have been crying to government so that it could do something to serve its people from these predators,” said Mwagomba.
He said it is therefore very unfair for the private traders to cry foul when government makes a move to protect the vulnerable masses.
