* It will help government to have fixed markets that will absorb all the products that farmers have produced
* My advice is that government enables farmers who are licenced to export their products
By Levison Lester, MANA
Director of Research and Outreach at the Lilongwe University of Agriculture & Natural Resources (LUANAR), Samson Katengeza is supporting government’s decision to ban exportation of raw soya beans, saying it will help in controlling and tracing the country’s forex.
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Ministry of Trade & Industry — in collaboration with the Ministry of Agriculture — announced the suspension of exportation of raw soya beans with effect from Monday, April 8, 2024.
Thus Katengeza said the decision will help government to have fixed markets that will absorb all the products that farmers have produced: “This is a good development as free exports of soya beans hinders government from tracing forex coming into the country.
“My advice is that government enables farmers who are licenced to export their products,” Katengeza said, while also noting that the development will ensure producers benefit from fixed prices as it will be instituted by government as a result of the export ban.
Ministry of Trade & Industry’s public relations officer, Patrick Botha said the decision to restrict exports of raw soya beans has been necessitated following an assessment of soya bean production for the current agricultural production season.
A soya beans field
Botha added that the national crop estimates exercise carried out by the Ministry of Agriculture has shown that there is a 20% decline in the production of soybeans attributed to the adverse weather conditions experienced in the current farming season in Malawi.
He said the restriction, therefore, aims to support local industries and investors in the soya value added chain to access the produce as it is the main raw material in the production processes of by-products which include cooking oil, and soya cake among others.
He further explained that the directive is also in line with the country’s national development plan, the MW2063 of promoting value addition and industrialisation as one of the key pillars of the economy.
In the press release, the Ministry of Trade & Industry has advised the business community and the general public that, all previous licenses on the exportation of raw soya beans that were issued by the Ministry — under the Control of Goods Act — are hereby revoked and will not be valid from Monday, saying traders who will be found exporting raw soya beans during the suspension period will likely face the law.
In his reaction to the government’s decision, Dowa-based farmer, Paul Chiwaya said this will enable local farmers to benefit as the export ban will ensure a steady demand of soya beans in the country.
Chiwaya then called upon government to institute strategies that will foster long term sustainability and competitiveness of the soya beans at the market for farmers to benefit.
“Additionally, it is important for government to monitor the market closely to ensure that the increased availability of soya beans does not lead to oversupply or price fluctuations in other sectors,” Chiwaya said.
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