* The President alluded that fertilizer is at about K110,000 a 50kg bag while maize is at over K50,000
* ‘Fertilizer is still cheap because a farmer is able to sell only two bags of maize to buy one bag of fertilizer’
* This kind of economics is quite puzzling, to say the least,” says the former Reserve Bank of Malawi (RBM) Governor
* It ignores the complex realities of farming and the challenges that farmers face
By Duncan Mlanjira
“What kind of economics is this?” asks 2025 presidential aspirant Dalitso Kabambe referring to the statement that President Lazarus Chakwera made in Parliament yesterday where he was asked to explain the astronomical price increase of fertilizer.
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The President appeared in the august House to answer questions from the MPs, and one of them was on the astronomical price increase of fertilizer — and his answer: “Fertilizer is still cheap because a farmer is able to sell only two bags of maize to buy one bag of fertilizer”.
“So something is working despite the propaganda that prices of fertilizer have increased,” the President said, alluding that fertilizer is at about K110,000 a 50kg bag while maize is at over K50,000.
The President in Parliament yesterday
Kabambe observed that what Chakwera explained “that farmers now just need to sell two bags of maize to buy a bag fertiliser as his government’s achievement, would have been laughable if it were not tragic”.
“This kind of economics is quite puzzling, to say the least,” says the former Reserve Bank of Malawi (RBM) Governor. “It ignores the complex realities of farming and the challenges that farmers face.
“In reality, farmers need consistent and stable prices for their produce to ensure a decent income and to cover their production costs, including the cost of fertilizer.
“High prices can be beneficial in the short term, but they can also lead to market fluctuations and uncertainty, making it difficult for farmers to plan and invest in their farms.”
Dalitso DK Kabambe
“Moreover, this type of ‘Chakweranomics’ overlooks the fact that many farmers in Malawi, for example, rely on subsidies to access fertilizer and other essential inputs. When prices are high, these subsidies become even more crucial to ensure that farmers can afford the inputs they need to produce maize.
“It is surprising that the whole Head of State would suggest that farmers can simply sell a few bags of maize to cover the cost of fertilizer without considering the broader economic context and the needs of farmers.
“In addition, last year’s harvest was low and had rendered 5 million-plus Malawians in hunger crisis. How would one then sell maize which they don’t have to cover for the cost of fertilizer?
“This kind of economics is not only flawed but also out of touch with the realities of farming and rural development. To say the least, I am ashamed on behalf of the president. Dear Malawians, how did we come to this?”
A response to Kabambe post observed that if two 50kg bags of maize can buy a bag of 50kg fertlizer, it means, the maize is equally very expensive.
Andre Jimmy was of the opinion that even an MP cannot present the narrative that the President made when he said in the past, two 50kg bags of maize could buy one for fertilizer.
Benard Losiwa said he was asking himself “what will happen if the cost of fertilizer reaches K500,000 per bag in five years time and one bag of maize being K200,000? and minimum wage at K100,000 — will he still say with two bags of maize you can buy fertilizer? Is every Malawian a farmer?”
Another commentator, on his own Facebook page under the name John Cupstone, said “the president’s narrative highlights a significant changes in both the price of fertilizer and the price of maize, which affect the exchange ratio:
* Price of fertilizer: Initially, a bag of fertilizer was costing K18,000 — now it costs K105,000. This reflects a 5.83 times increase in fertilizer price (K105,000 ÷ K18,000).
Here is the logic:
* Price of maize: Initially, five bags of maize were required to buy one bag of fertilizer, meaning the equivalent price of maize per bag was: Price of maize per bag=18,000÷5=3,600.
Now, only two bags of maize are needed, meaning: Price of maize per bag=105,000÷2=52,500
This indicates that the price of maize per bag has increased by 14.58 times (52,500 ÷ 3,600).
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“The conclusion is that the price of fertilizer has increased significantly, making it more expensive in absolute terms,” says Cupstone. “The price of maize has risen even more sharply, leading to improved purchasing power for maize relative to fertilizer (fewer bags are now needed to buy fertilizer).
“This suggests a favorable shift in the exchange rate for maize sellers and farmers as a whole despite the overall rise in fertilizer prices which is due to many factors including supply chain.
“To be specific, there is an improved purchasing power for farmers selling maize and other farm produce than it was under DPP administration.”
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