The government recently announced the ban in an attempt to clamp down on hoarding and appointed the state grain marketer, the Agriculture Development and Marketing Corporation (ADMARC), as the sole buyer and seller of maize in the country.

Andrew Daudi, principal secretary in the ministry of agriculture and food security, said the step had been taken to ensure food security. Despite government assurances of a surplus, Malawi's traders expect maize prices to rise later in the year and have been holding on to stocks, artificially pushing up the price at the tills.

The government and food aid agencies projected a food surplus, although the USAID-funded Famine Early Warning Network (FEWS-NET) said it would be lower than initially estimated. The government has yet to release its final figures on the main maize harvest, collected between March and July.

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) and the Grain Traders and Processors Association (GTPA) both described the ban as "unrealistic", and a disincentive to farmers and traders that would have little impact on hoarding.

Government has fixed the price at which ADMARC will buy and sell maize: the state marketer will pay farmers and traders K45 ($0.31) per kilogramme (kg), or K2,500 ($17.86) per 50kg bag, and sell it at K52 ($0.37) per kg, or K2,600 ($18.57) per bag.

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[29 Aug 2008 11:48]

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