Grain Traders Welcome Higher Maize Purchase Price

The Grain Traders Association (GTAZ) have welcomed the government’s decision to raise the official maize price to K340 per 50kg bag, stating the increase will incentivise farmers to expand cultivation of the country’s staple crop. 

The Food Reserve Agency (FRA) announced the new price on Tuesday following consultations with industry stakeholders, including the GTAZ. The GTAZ say the new pricing will boost production after last year’s significant shortfall. 

“The only way we can encourage the farmers to grow more is by ensuring that we’re giving them a good price and that is a price that has been announced today.” GTAZ spokesperson Yotam Mkandawire told state broadcaster ZNBC. 

The price announcement comes as the country grapples with food security concerns following a challenging 2024 growing season.

Higher commodity prices typically provide multiple economic incentives that encourage farmers to increase production. Direct profit incentives not only improve household incomes, but also justify spending more on input, such as fertiliser and pesticides. As a result it is hoped that the farmers are more willing to invest in these productivity enhancing tools if they are expecting a better return from their harvest. Profitable maize prices also encourage farmers to bring more land under cultivation, either by clearing new fields or converting land previously used by other crops or left fallow.