The Grain Traders Association of Zambia-GTAZ says the maize floor price for the 2021/2022 crop-marketing season will be lower than the price for the 2020/2021 crop-marketing season.
Speaking in an interview with the Zambian Business Times-ZBT, Association Spokesperson Yotam Mkandawire explained that last year’s maize buying price was not genuine as it was induced politically therefore the expectation is that this year’s price will be market reflective.
“It was politically motivated because the president increased the price of maize, it was not the price that the market was expecting, it was an induced price, it was pronounced for the sake of elections and votes”, he said.
Mkandawire however noted that the price of the new crop will not stay low for long and will start going up because of the shortages in the region adding that there is a high demand for maize in the neighbouring countries.
“Beginning of the season, the price will be low but it will start going up eventually. Right now because of the moisture content, the price of maize is low because when people are buying they are factoring in the water in the maize and because of that water; you cannot give a very good price. As time progresses, around June-July prices will go up because the moisture content would have reached the desired level”, he said.
He also mentioned that the price of maize would be determined by factors such as the cost of production, cost of inputs , cost of labour and the cost of fuel adding that the cost of fuel is currently high therefore transporting a tonne of maize now will cost more than last year’s cost to transport the same quantity.
Mkandawire stressed that despite the reduction of maize production this year, maize prices would not be affected by this factor due to the substantial quantity of maize reserves that the country has.
Agriculture Minister Reuben Mtolo has disclosed that the country has recorded a decrease in maize production from last year’s 3.6 million metric tonnes to 2.7 million metric tonnes, which represents a 25.24% decline.
The minister said the reduction in maize production is due to the reduction in the area planted and the reduction in yields per hectare from 2.14 metric tons last season to 1.8 metric tons in the 2021/2022 farming season.
