Malawi to pay local maize farmers more

LILONGWE (Reuters) - Malawi will pay higher prices to local farmers to prevent foreign traders from acquiring the country's maize and hoarding the staple crop, an official at the National Food Reserve Agency (NFRA) said.

The government will buy maize from local farmers at 65 kwacha per kilogramme (46 U.S. cents) from the previous 17 kwacha/kg.

NFRA General Manage Edward Sawerengera said the government decided to set competitive prices and has so far managed to buy 85,000 tonnes to be sold during December and January.

"We are now buying at 65 kwacha per kilogramme to fend off competition from outside our borders and try to keep enough food for our people during the months of December and January when people need food," Sawerengera said.

Sawerengera said the total target is to buy 110,000 tonnes to keep in the country's strategic grain reserves.

Maize prices on the open market have risen sharply since January this year from about 17 kwacha per kilogramme to 45 kwacha/kg last month.

Three consecutive good harvests backed by a successful fertiliser subsidy programme has seen Malawi produce a surplus of 500,000 tonnes this year. Last year, the country produced a 1.3 million tonnes surplus, the highest in 10 years.