…plan to review white maize prices
BY DELISA THWALA
MBABANE – National Maize Corporation (NMC) has come out today with the buying and selling price of maize in the country due for a review before the current month ends.
This was revealed by Chief Executive Officer Mavela Vilane who said indicators showed that both buying and selling prices of white maize would go down, something that is expected to translate to a reduction in the prices of white maize products in the country.
Vilane indicated that the local practice is to review both the buying and selling price of white maize every three months, with the prevailing prices having come into effect on April 20, 2023, and are effective until the same date in July 2023, hence the review that is planned before the end of June 2023.
With regard to the pricing mechanism, Vilane clarified that there was a marketing advisory committee responsible for the price review.
The committee is composed of the Ministry of Agriculture (Chairmanship and Secretariat), NMC, millers, organised farmers’ representatives and consumer representatives, just to name a few.
The CEO mentioned that the local price of white maize was determined using a number of factors, one of which was the South African Futures Exchange (SAFEX) Pricing System.
Other factors, according to Vilane, include transport, import levy, overheads as well as profit margin since NMC buys maize from the Republic of South Africa at a delivered price, which is not necessarily the SAFEX price.
According to Vilane, NMC currently buys white maize from local farmers at E5 400 per metric tonne (MT), which is the highest price on offer to local producers in the region.
Vilane indicated that at the present moment, they delivered white maize imports at E4 290/MT something that is an indication that the E5 400 offered to local producers was lucrative to farmers.
Vilane highlighted that this price was a bit stiff for NMC, yet empowering for local farmers. However, because the supply of white maize in the market has meant a great reduction in SAFEX price, which is a huge contributor to local prices, the reviewed offer to local farmers will be reduced come July 2023, which will also see a reduction in the selling price by NMC to its customers.
“This will bring a relief to the consumers as there is an expectation for processors to also reduce their selling prices,” Vilane said.
Vilane stated that they do issue import permits to millers should they fall short of meeting their demands. However, he said farmers did not require white maize import permits, but would rather prefer being able to source production inputs at cheaper prices from wherever they could.
