Malawi farmgate price plan falters as union calls for ADMARC funding, tougher enforcement

By Edwin Mauluka

Enforcing Malawi’s newly announced minimum farmgate prices will hinge on timely funding for state buyer ADMARC and stronger local oversight, the Farmers Union of Malawi (FUM) has warned.

The union says the government’s current approach, which includes deploying the police to monitor compliance, is falling short, as some traders continue to ignore the set prices.

FUM president Maness Nkhata said minimum farmgate prices are meant to protect farmers and keep them engaged in agricultural production. But without effective enforcement, the policy risks becoming little more than a paper promise.

“As Farmers’ Union, we acknowledge that the government has mandated the Malawi Police Service to support monitoring and enforcement of minimum farmgate prices,” Nkhata told The Forum. “However, this approach has proven ineffective.”

She argued that enforcement would be more effective if backed by two key measures: funding and local accountability.

“First, there must be timely disbursement of funds to ADMARC so it can act as a market leader in implementing these prices,” Nkhata said. “Secondly, traditional leaders and local government structures should be actively involved in monitoring and enforcement.”

Nkhata stressed that minimum prices are designed to cover farmers’ production costs, making compliance critical across the value chain.

“To ensure the viability of agricultural business, both farmers and traders must adhere to these prices,” she said.

The Ministry of Agriculture, Irrigation and Water Development says it has already put in place mechanisms to enforce compliance. Spokesperson Salome Gangire said these include coordinated market surveillance through Agricultural Development Divisions (ADDs), district agriculture offices, local councils and traditional leaders, alongside law enforcement agencies.

“The Ministry is also strengthening farmer awareness through extension services to ensure producers are informed of officially gazetted prices and are empowered to demand fair value,” Gangire said.

She added that monitoring is already underway across districts, with field officers conducting inspections and engaging stakeholders.

“The Ministry is working closely with enforcement agencies to ensure compliance, and reports from the field are continuously reviewed to guide responsive action,” she said.

The government has also required traders to obtain licences before buying agricultural produce. Gangire said compliance is improving, with many traders securing permits through the Department of Crop Development and ADDs.

However, some traders are still operating outside the law.

“Those found buying produce without valid licences will face regulatory action, including confiscation of commodities, penalties or prosecution,” she said. “Licensing is critical for orderly markets, protecting farmers from exploitation and improving traceability in agricultural trade.”

Gangire urged farmers to familiarise themselves with the official prices and to sell only to licensed buyers. She also called on traders to comply with pricing and licensing rules, saying this would help stabilise the market.

“The general public is encouraged to report cases of non-compliance. Collective responsibility is essential to ensure the agricultural sector functions efficiently and benefits all stakeholders,” she said.

The ministry announced the minimum farmgate prices on April 14 for the 2025/26 agricultural season, setting maize at MWK900 per kilogram.

Other prices include rice (paddy) at MWK1,500 per kilogram, sorghum at MWK1,100, finger millet at MWK1,400 and soya beans at MWK1,700. Pure beans are pegged at MWK3,400, mixed beans at MWK2,500, and white haricot beans at MWK3,000 per kilogram.

Groundnuts are set at MWK3,500 per kilogram (shelled) and MWK2,000 (unshelled), while pigeon peas and cowpeas are priced at MWK1,500 and MWK1,600 respectively.

Sesame is pegged at MWK3,500, sunflower at MWK1,500, paprika at MWK3,800 and chillies at MWK7,000 per kilogram — the highest among the listed crops. Cassava (wet) is set at MWK1,000 per kilogram, while milk has a minimum price of MWK1,000 per litre.

The government says the pricing framework is designed to protect farmers from exploitation and ensure fair returns. But as FUM’s warning suggests, without stronger enforcement and market leadership, those protections may remain out of reach.

Also Read: Malawi Mega Farms: Central Region gets 78% of inputs as loan defaults rise

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