Maize reserve buying stalls in Tanzania and Malawi as farmers reject benchmark prices
Tanzania's National Food Reserve Agency is opening maize purchases in Njombe at Sh450 per kilogramme, a level some farmers are refusing. In Malawi, an agency of the same name has dropped its contracted-supplier model after securing 26,663 tonnes of a 108,000-tonne target by mid-August, and now accepts deliveries of one tonne from any seller at K900 per kilogramme.
Two state grain buyers operating under the same name are short of maize. Tanzania's National Food Reserve Agency (NFRA) is opening purchases in Njombe at a benchmark of Sh450 per kilogramme, while Malawi's NFRA has abandoned its contracted-supplier model after collecting less than a quarter of its seasonal target.
Njombe purchases open at Sh450 per kilogramme
NFRA expects to begin buying maize from farmers in Njombe next week, giving growers a channel to sell through government procurement. The agency has set its buying benchmark at Sh450 per kilogramme.
The level is not being accepted across the board. The Citizen reported that NFRA has begun talks with maize farmers to secure grain for its purchasing programme, and that some producers are turning down the Sh450 benchmark. No purchase volume target for the Njombe operation has appeared in reporting available so far.
Malawi drops the contract requirement
In Malawi, the agency of the same name has opened maize procurement to all suppliers, including those without contracts, mwnation.com reported. The change followed difficulty securing grain from the 185 suppliers engaged to deliver 108,000 metric tonnes into the Strategic Grain Reserve.
Under the extended programme, any person or entity holding maize may deliver to NFRA without a prior contractual arrangement, with a minimum of one tonne accepted on a first come, first served basis, according to statements on the agency's website and Facebook page. All maize supplied is subject to inspection and quality verification against the agency's prescribed standards. NFRA is buying at K900 per kilogramme, equivalent to K45,000 for a 50kg bag. Deliveries are taken at eight depots:
- Kanengo, Lilongwe
- Kazomba, Mzimba
- Mzuzu
- Karonga
- Mangochi
- Limbe, Blantyre
- Luchenza, Thyolo
- Bangula, Nsanje
Traders call for K1,200 as Admarc runs out of funds
Contracted suppliers were given three weeks from 21 July to deliver. On 3 August, NFRA chief executive officer Bruce Munthali said the suppliers were about one week into that window and many had not supplied the grain. By mid-August the agency had procured 26,663 tonnes, less than a quarter of the 108,000-tonne target. Munthali declined to give mwnation.com an update on quantities procured, resources spent or the change in procurement rules, saying government was arranging a press briefing; board chairperson Howard Matiya Nkhoma said Munthali was better placed to comment. Information Minister Shadric Namalomba said the agency holds the figures and should be able to provide them.
Grace Mijiga-Mhango, president of the Grain Traders Association of Malawi, warned that NFRA will miss its target unless it raises the buying price from K900 to K1,200 per kilogramme. She said the main error was setting the price at farmgate level without factoring in transport and other costs incurred in delivering maize to the depots, and questioned whether the contracted suppliers held the grain they had committed to supply. Farmers sitting on stock are reluctant to sell at K900 given input costs, she said, adding that K1,200 would pull both farmers and traders into the market. She advised government to use contract farming, to enter the market earlier, and to ensure urban maize prices reflect the costs of moving grain to those markets.
Government allocated K60 billion to NFRA for maize procurement in the 2026/27 National Budget, but Finance Minister Joseph Mwanamvekha told Parliament on 21 July that K100 billion had been released to the agency to strengthen food security amid concerns over the effect of El Nino on production. The Agricultural Development and Marketing Corporation (Admarc) has also fallen short. Allocated K60 billion in the 2026/27 budget for commercial maize and other crops and targeting 65,000 tonnes of maize, it has stopped buying after exhausting the K5 billion released in May. Spokesperson Teresa Chapulapula said Admarc has bought 3,701.173 tonnes this year and believes farmers still hold maize, pointing to continued sales to vendors and to NFRA.
Lean-season requirement of 97,887 tonnes
The 2026 Malawi Vulnerability Assessment Committee food security assessment projects that 2.6 million people, or 14 percent of the projected national population, will be unable to meet their annual food requirements during the 2026/27 lean period. The affected population will need food assistance for three to four months, with total requirements estimated at 97,887 tonnes.
