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Wednesday, 16 April 2008

Malawi bans maize exports amid food supply concerns

Malawi said on Wednesday it had banned maize exports to all countries, except Zimbabwe, to ensure it had sufficient stocks to feed over a million people who lost crops due to flooding earlier this year.

The move comes amid increasing concerns about rising food costs in developing countries as protests flare around the globe. Faced with surging commodities prices an increasing number of countries have curbed food exports in a bid to secure supplies and limit inflation.

"Anyone found exporting maize or maize products will be liable to prosecution. This is in accordance with the provisions of the control of goods act under the laws of Malawi," Minister of Trade and Industry Henry Mussa said in a statement.

Mussa told Reuters the ban did not apply to neighbouring Zimbabwe.

"The ban is targeting unscrupulous traders operating under the guise of trade liberalization to export maize illegally. But this (ban) does not stop exports to Zimbabwe," Mussa told Reuters.

The southern African nation of Malawi harvested 3.1 million tonnes of maize last season, its biggest in 10 years. Malawi agreed to export 400,000 tonnes to neighbouring Zimbabwe, which is battling an economic crisis.

Malawi, one of the poorest nations in the world, started rationing the sale of maize two months ago following a report in parliament that the country's stocks were dwindling as heavy flooding wiped out many crops.

U.N. agencies in Malawi estimate that a million or more people may need food aid after floods destroyed fields in 14 districts earlier in the year. About 72,000 people have been left homeless and six killed by flooding.

Mussa said that Malawi has enough maize, but wants to make certain there is enough food in the country.

Malawi President Bingu wa Mutharika has denied the country is running out of maize despite a report that two people starved to death, and opposition claims that the government sold too much of its maize to Zimbabwe.

"We had warned the government not to sell 400,000 tonnes to Zimbabwe at our expense and now this is what is happening," Ishmael Chafukira, spokesperson for the main opposition Malawi Congress Party, told Reuters.

"The ban should be extended to Zimbabwean exports," he said.

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