MALAWI: Maize sellers in Malawi vow to defy government ban on private trade in the commodity

Record ID: 453941

  • Title: MALAWI: Maize sellers in Malawi vow to defy government ban on private trade in the commodity
  • Date: 23rd September 2008
  • Summary: PEOPLE WALKING ON STREET
  • Embargoed: 8th October 2008 13:00
  • Keywords:
  • Location: Malawi
  • Country: Malawi
  • Topics: Economic News,Domestic Politics
  • Reuters ID: LVAWPPOUIUND45CR5PTRUB1X469
  • Story Text: Maize traders in Malawi vow not to stop selling the commodity despite a recent presidential order banning all private trade. Officials say the ban was necessary to control hoarding and prices spikes by traders despite bumper harvests.
    Traders in Malawi vowed not to halt selling maize on Friday (September 19), despite a presidential ban.
    President Bingu wa Mutharika issued the directive in August when officials accused traders of holding onto maize stocks and driving up prices in spite of an expected bumper harvest.
    Traders have been given until September 30 to sell their current stocks to the state-owned Agriculture Development and Marketing Corporation (ADMARC), now the only licensed buyer and seller of maize in Malawi.
    One Blantyre resident, Lucy Mpando said the ban was not fair.

    "What he did is not fair to other people because not all of us can manage to buy maize from ADMARC," she said.
    Lawyer, Arthur Fukundo said the government's motives were good but led to long lines at ADMARC's selling points.

    "Of course the president made it clear and the idea is good, but it is not well-timed because people are queuing at ADMARC," he said.
    Traders say the ban will only discourage farmers from growing maize since ADMARC prices will not make it worth their while. ADMARC buys from farmers and traders at about 0.31US dollars per kilogram and then sells to consumers at 0.37 US dollars while traders give farmers about 0.42 US dollars per kilo and charge customers between 0.41 and 0.56 US dollars.
    Maize traders like Maximos Nkhalango said they will ignore the ban as they can not sell their stock at a lower price than it was purchased at.

    "We are selling this maize against government's decision.
    Government wants us not to sell the maize and at the same time it says we must reduce the price. But we cannot because we are also buying at a higher price, so we will see," Nkhalango said.
    One maize trading company, Mulanje Milling Company Limited, has filed an application challenging the presidential directive on the grounds that it is unconstitutional and unreasonable.

    "The government is infringing on our rights. We depend and live on this trade and we have been doing this for years. Now we are being asked to stop. What shall we do now? I don't know," a private maize trader, Aggrey Mopiha said.
    Some traders also accused the government of covering up a looming maize shortage.
    One maize miller in Blantyre, Chance Rodrick said the governments stocks have run low and ADMARC is rationing its supply.

    "The government has cheated people that it has a lot of maize because the commodity is scarce now. The number of people coming to mill here has dropped even in other maize mills. If you go to ADMARC, and you want to buy a 50 kilogram bag, they only give you half of it. So can we say that there is a lot of maize in the country? No," Chance Rodrick said.
    Malawi suffered years of repeated maize shortages from drought, the impact of HIV and deepening poverty.
    However better weather and a government strategy improving farmers' access to inputs like fertiliser, has seen the country go from a chronic food deficit to an exporter of maize within the last two years.
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