The price of maize on the local market has continued to rise with most millers paying K4, 000 a tonne.
This according to the Brief case Trader that reports that Millers are trying to ensure they have enough maize to cover them until next harvest season running from May to June 2020.
In the 2020 national Budget the government has allocated K660 Million to the Food Reserve Agency towards the purchasing of strategic reserves, the lowest amount allocated towards maize purchases in 7 years.
And the Trader notes that the reduced allocation signals the government’s intention to play a reduced role in maize marketing next year.
According to the Brief case Trader, this will have an impact on the current season as the Food Reserve Agency is unlikely to supply maize at a subsidized price and the amount of maize they may supply will not be significant enough to ensure all millers have enough stock to mill before the next harvest.
As a result, the trader predicts that maize prices will continue to rise as Millers will try to avert the risk of running out of stock millers as they will try to purchase as much maize as they can now.