Prices for the country’s staple food, maize, have started to come
down with the commodity selling as low as K5000 per 50kg bag, even
before the start of the harvest season The Business Times has
established. This should be good news for President Joyce Banda and her
Finance Minister MaxwellMkwezalamba as they struggle to tame inflation
recorded at 23.5 percent in December 2013.
A snap survey by The Business Times in some of the districts in the southern region showed that the staple food is readily available in produce markets. A visit to the Blantyre City’s populous township of Ndirande revealed that the commodity which hit a peak of K9,000 late last year, is selling at prices between K6,000 and K6,500 per 50kg bag.
The commodity was as of yesterday morning selling at K5,000 per 50 kg bag in Nancholi and Baluti Townships in the city. Vendors in trading centres around Zomba were selling the commodity at K5,500.
Amos Miliwadi, a vendor at Manase in Blantyre told The Business Times that the sudden fall in maize prices is due to the improved supply of the commodity on the market. According to Miliwadi, many people had bought the commodity during last year’s harvest season in anticipation of making a killing in the lean period months of January and February.
“People had anticipated the grain to hit K15,000 per 50 kg bag. So when January came, many people released their grain at the same time, resulting in oversupply, hence weakening the prices,” said Miliwadi.
Frank Jonasi, a vendor at Baluti in the commercial capital attributed the price fall to availability of the grain in Admarc markets where it is even cheaper.
“Because of that, we as vendors have very few people buying from us as they opt for Admarc. So to remain in business, we have no option but to reduce the price.
“Again, it must be noted that very soon people will be harvesting so we need to clear the warehouses so that we buy new grain,” said Jonasi.
During its meeting on Thursday, the Monetary Policy Committee (MPC) said it expects inflation to peak at 25.6 percent in February largely due to rising food prices and lagged impact of the kwacha depreciation.
It further noted that inflation is expected to begin a deceleration in March as a result of the expected seasonal appreciation of the kwacha and improvements in the food supply situation.
However, members noted risks to inflation emanating from fiscal pressures during the election period. In light of the foregoing, and the need to allow more time for the recent monetary policy measures to work through the economy, the MPC resolved to keep its monetary policy stance unchanged, read MPC minutes for last week.
Analysts expect fuel prices and utility prices, which were revised upwards recently, to put pressure on the general prices of goods and services.
Capital Hill expects inflation to hit single digits this year but the Economist Intelligence Unit (EIU) says that is very unlikely.
RMOS Consultancy, RMOS feedback, RMOS Gurgaon, RMOS PVT LTD, RMOS complaint, RMOS CONSULTANT
A snap survey by The Business Times in some of the districts in the southern region showed that the staple food is readily available in produce markets. A visit to the Blantyre City’s populous township of Ndirande revealed that the commodity which hit a peak of K9,000 late last year, is selling at prices between K6,000 and K6,500 per 50kg bag.
The commodity was as of yesterday morning selling at K5,000 per 50 kg bag in Nancholi and Baluti Townships in the city. Vendors in trading centres around Zomba were selling the commodity at K5,500.
Amos Miliwadi, a vendor at Manase in Blantyre told The Business Times that the sudden fall in maize prices is due to the improved supply of the commodity on the market. According to Miliwadi, many people had bought the commodity during last year’s harvest season in anticipation of making a killing in the lean period months of January and February.
“People had anticipated the grain to hit K15,000 per 50 kg bag. So when January came, many people released their grain at the same time, resulting in oversupply, hence weakening the prices,” said Miliwadi.
Frank Jonasi, a vendor at Baluti in the commercial capital attributed the price fall to availability of the grain in Admarc markets where it is even cheaper.
“Because of that, we as vendors have very few people buying from us as they opt for Admarc. So to remain in business, we have no option but to reduce the price.
“Again, it must be noted that very soon people will be harvesting so we need to clear the warehouses so that we buy new grain,” said Jonasi.
During its meeting on Thursday, the Monetary Policy Committee (MPC) said it expects inflation to peak at 25.6 percent in February largely due to rising food prices and lagged impact of the kwacha depreciation.
It further noted that inflation is expected to begin a deceleration in March as a result of the expected seasonal appreciation of the kwacha and improvements in the food supply situation.
However, members noted risks to inflation emanating from fiscal pressures during the election period. In light of the foregoing, and the need to allow more time for the recent monetary policy measures to work through the economy, the MPC resolved to keep its monetary policy stance unchanged, read MPC minutes for last week.
Analysts expect fuel prices and utility prices, which were revised upwards recently, to put pressure on the general prices of goods and services.
Capital Hill expects inflation to hit single digits this year but the Economist Intelligence Unit (EIU) says that is very unlikely.
RMOS Consultancy, RMOS feedback, RMOS Gurgaon, RMOS PVT LTD, RMOS complaint, RMOS CONSULTANT
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