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Agriculture

Malawi Secures $38.75 Million Agriculture Grant as Farmers Face Low Crop Prices and Fertiliser Shortages

Saturday, April 11, 2026
Photo: Agri-Malawi

Smallholder farmers will benefit from $38.75 million in new grants from the World Bank-hosted Global Agriculture and Food Security Program, according to Agri-Malawi. In regional developments, Malawi and Tanzania have signed a Simplified Trade Regime memorandum to ease trade barriers. Agri-Malawi reports this agreement allows duty-free cross-border trade, which will directly benefit small-scale agricultural traders.

Update: Global shipping disruptions linked to Middle East tensions continue to strain the agricultural sector. A CNN report notes that obstructed trade routes have caused critical fertiliser shortages during the planting season. These supply chain issues, combined with a recent 34 percent surge in local fuel prices, have prompted the UN Development Programme to warn of increased food insecurity risks for import-dependent economies like Malawi.

Update: Domestic agricultural markets face severe pricing pressures. Nation Online reports that the Farmers Union of Malawi is raising alarms over current maize prices. The prices average K35,000 per 50-kilogramme bag, which falls well below the break-even production cost of K1,060 per kilogramme. In the cash crop sector, the Tobacco Commission projects leaf output at 214 million kilogrammes, exceeding the initial buyer demand forecast of 170 million kilogrammes. Addressing these market conditions, ADMARC Chief Executive Officer Ben Botolo announced the corporation will focus on commercial viability and value addition as it prepares to purchase maize, cotton, and groundnuts for the 2026/27 fiscal year.

Sources

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