Maize price rises worry Reserve Bank of Malawi
A top official of the central bank has expressed worry of the ever increasing prices of the staple food, maize, saying this could trigger inflation.
The Reserve Bank of Malawi governor Dalitso Kabambe said he was worried with the maize prices despite the fact that the country registered bumper yield this year.
“This situation is very worrisome. We are monitoring the situation very closely,” said Kabambe.
He said the food inflation could trigger the rise in prices of other commodities, forcing the rise in cost of living.
Technically, inflation refers to the rate of the general rise or movement in prices of goods and services consumed in an economy. It is also defined as a general and sustained rise in the level of prices of goods and services.
In his numerous addresses, President Peter Mutharika highlights the single-digit inflation rate among his administration’s achievements in terms of economic management.
Economists Association of Malawi (Ecam) president Chiku Kalilombe has advised the government to order the National Food Reserve Agency (NFRA) to release all the stocks of maize it has and sell it at low prices to counter the high maize prices commodity vendors and traders are selling.
“If the NFRA maize can be released to Admarc depots and sold at cheaper prices, the situation can change,” said Kalilombe.
A bag of maize in cities is now selling at K15, 000 up from K8, 000 just a few weeks ago, prompting fears that the prices might be going up every week.
The principle of supply and demand. Maize has been under priced for too long. This is what should happen when government do not interfere with the markets.
Its dancing time to the farmers now. They have been oppressed for a long time. Always nature takes charge.