Did enforcement of farm-gate minimum prices lead to a maize marketing crisis in Malawi?
During the 2020/21 growing season, the Government of Malawi made a bold move to protect small-scale farmers from unscrupulous traders who buy farm produce without licenses, use uncertified scales and buy at very low prices below the farm-gate set prices. The government tasked the Malawi Police Service with ensuring that all traders in the agricultural sector adhered to the set measures, and traders that did not comply were persecuted. By May 2021, 109 traders had been arrested across the country, and those prosecuted had to pay a fine of MK60,000 (US$75) or be jailed for 9 months. The Malawi Police Service was applauded for enforcing farm-gate set prices, but what were the implications on grain marketing in the local markets?
Agricultural produce marketing regulations
The govern...