Minister of Trade and Industry, Sostain Gwengwe is optimistic that price escalations of maize in the country will be stabilized as the 90,000 metric tones of maize has started arriving.
Gwengwe was responding to what government is doing to handle the price escalations, which has seen prices going up to K100,000 per bag in some areas.
Gwengwe said government has decided to supply more maize on the market as a way of handling the situation.
“We think the best way to handle the price escalation on maize and maize floor is to look at supplying the market more and that’s why you heard that government through the ministry of finance has funded NFRA and maize has been bought from Tanzania and arrives this country from this weekend”
“But there’s also about 70,000 metric tones of maize that has been procured through the World Bank and that maize started arriving on thury and we believe that this amount of maize once distributed should depress the prices for maize” he said.
According to Gwengwe, the driver to price escalations is the volatility on the black market Forex.
“So because of inaccessibility of foreign exchange in banks, the private sector has resorted to black market causing too much demand at the same time making the dollar on the black market very volatile and this has resulted into the price escalations”
Asked if government can enforce price escalation, he said: “That’s competition and fair trade job, government can not put limit on prices unless there’s subsidy because of the laws that we adopted”
Meanwhile, Member of Parliament for Mulanje Bale Victor Musowa has accused some government officials of being behind the scenario for their personal benefits.
“There are politicians that are creating this scenario for them to purchase maize in ADMARC for cheaper prices and sell it on the black market”.
Musowa has further warned to mention names of the culprits if the current situation continues after one week.
