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Agriculture

Government Audits Farmgate Prices as Study Warns of Underfunded Agriculture Budget

Monday, August 24, 2026
Photo: The Nation

A new study by the Centre for Agricultural Research and Development at the Lilongwe University of Agriculture and Natural Resources warns that current budget priorities threaten Malawi's agricultural growth, according to The Nation. The research highlights that the 2026/27 National Budget allocates only 8.5 percent to agriculture, falling short of the African Union's 10 percent target. Most of this funding is absorbed by the Farm Inputs Subsidy Programme, leaving areas like research, markets, and irrigation underfunded. A policy brief by the Civil Society Agriculture Network reveals that agricultural extension services receive one percent or less of the sector's budget. This shortfall has pushed the farmer-to-extension-worker ratio to 1:4,500 as the country prepares for an El NiƱo season.

In response to concerns over farmer exploitation, the Malawi Government has launched a nationwide audit of major agricultural produce buyers to enforce compliance with gazetted farmgate prices, The Nation reports. Minister of Agriculture Roza Mbilizi announced the audit in Parliament, noting that some vendors have been purchasing maize for as little as K600 per kilogramme, which is well below the government-set minimum of K900. Mbilizi also disclosed that the Ministry of Finance has released K10 billion to the Agricultural Development and Marketing Corporation (ADMARC) to purchase non-maize crops from farmers.

Meanwhile, a Board of Survey report has revealed that delayed disposal of farm inputs held by the Malawi Enterprise Development Fund has resulted in an estimated K5.2 billion loss, according to The Nation. Prolonged storage has caused extensive damage to seeds and fertilisers due to damp conditions and weevil infestations. The disposal had been halted by the Public Accounts Committee of Parliament pending a forensic audit.

Sources

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