Agricultural Development and Marketing Corporation (Admarc) which has for the past months been playing hide and seek on whether it has enough maize to take it into the forth coming harvest season, has started buying maize straight from the garden in a bid to cover up the shortage.
However, the Grain Traders and Processors Association (GTPA) have described the move as a recipe for disaster both to Admarc and the farmers.
Admarc, which normally starts buying maize in June, and the Ministry of Agriculture confirmed this week that Admarc has opened its markets across the country to purchase maize which would be sold in areas where there is shortage of the staple.
Both and confirmed during the week that the produce buying and selling company has started buying the maize.
However, while Admarc Chairman George Kanyama Phiri admitted that the maize is being bought to service some parts of the country where there is a problem of hunger the corporation’s spokesperson Agness Chikoko in a separate interview disputed that the maize was being bought to cover up the shortage.
“I am aware of this policy of buying now. We are buying and reselling it immediately while the grain reserves (Strategic Grain Reserves) are being serviced,” said Kanyama Phiri.
Kanyama Phiri, who is also an agricultural professor from the University of Malawi’s Bunda College of Agriculture, speaking in his professional capacity said it would not be alright to keep the maize being bought now since it would have a higher moisture content than recommended.
“Maize is kept with moisture content of 12.5 per cent or below if the moisture is higher then it will rot if it wil be kept for a long time. That would be my professional advice,” he said.
On the other hand Chikoko said Admarc wanted to start buying the maize earlier to avoid a crash with commercial traders who she said last year started earlier than Admarc and made it difficult for the corporation to get enough maize from the farmers at a good price.
Asked whether it was normal to start the purchase in March and while farmers have not yet started harvesting Chikoko said the buying of farm produce every year depends on when the rainy season started.
“What we are saying is that all our markets are open and farmers who are ready to sell their maize can come to our markets, we are ready to buy the maize,” she said.
Chikoko said there were some areas in the country where farmers have started harvesting.
Only two weeks ago the Ministry of Agriculture warned private traders against what the ministry said were illegal purchases of maize while it is still in the garden.
The ministry said such a practice was tantamount to exploitation and should immediately be stopped since farmers are offered ‘very’ low prices.
The statement which was signed by Secretary for Agriculture and Food Security Patrick Kabambe further advised farmers to wait until they harvest their maize crop, store adequate amounts of maize enough for the households up to the next harvest season and sell only the excess.
Chikoko, however, said Admarc move does not mean that it is buying maize from the garden saying as a government institution it can not do business to exploit the farmers.
“It is not like we are forcing anyone to sell. Those who are ready and feel their maize is dry enough with adequate moisture content are free to bring their maize, while those not ready will wait,” she added.
Chikoko could not be drawn to comment on how much Admarc has put aside for the maize purchases here and how much maize it is expected to buy from the farmers.
Secretary for Agriculture Patrick Kabambe also said what his ministry was discouraging is different from what Admarc is doing.
“Its totally different because there are people who go to a farmer while the maize is still in the garden and negotiate the price while Admarc is buying already harvested and dried maize,” he said.
Kabambe cited Phalombe, Mulanje, Mchinji and Dzalanyama in Lilongwe as areas where people have harvested.
He said also another difference with the private traders was that Admarc was buying the maize at K20 per kilogramme while the other traders are offering “ridiculously low price.”
GTPA Chairperson Grace Mhango said what Admarc was doing was unacceptable because she said farmers were supposed to sell excess maize and it would be difficult for them to judge whether they have excess or not before fully harvesting and drying the maize.
“The problem is two fold here; If Admarc is buying to keep the maize then I have to tell them that they are buying water, they are bound to lose almost 30 to 40 per cent of the weight they are buying now through moisture loss. In terms of cash that is a significant loss, if Admarc is using borrowed money then it is sinking the money,” she said.
Mhango said such a scenario means that the farmer will have an advantage selling maize with artificial weight because of high moisture content but in the end the same farmer would have to buy the same maize at a higher price.
She added: “On the other hand if the maize is going straight on the market to cover up the current shortage it is OK on the part of Admarc but then we are creating a vacuum. Come October again the maize will have run out on the market.”
Mhango said the appropriate time to start buying maize in the country is May and June when she said the maize has well balanced moisture content.
The GTPA Chairperson also expressed concern that Admarc was buying the maize at a time when the Ministry of Agriculture has just issued a warning against such a practice.
Chairman of the Parliamentary Committee on Agriculture and Natural Resources Vitus Dzoole Mwale said although the committee has no problems with Admarc starting buying the maize now March was ‘too’ early for the exercise.
“I see that as a good response to our concern in Parliament that Admarc should start buying the maize earlier but then why in March, I don’t think that is usual. It is too early, may be they want to cover up the current food shortage,” he said.
Dzoole Mwale said the major challenge in Admarc’s move would be to sensitise the farmers about food security and how they can keep enough for their households.