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Malawi · Section 4 of 9

Value chains & market institutions

The maize chain runs through the fertiliser input subsidy, a government minimum farm-gate price, purchases for the strategic grain reserve by the National Food Reserve Agency and maize trading by ADMARC. The subsidy budget was approved at K111.45 billion for 2026/271. Tobacco is sold through auction floors and contract farming, and the ACE warehouse receipt system links grain storage to bank credit. People in IPC Phase 3 or above in the lean season rose from 1.5 million in 2021/22 to 6.2 million in 2024/25 and are projected at 2.6 million for 2026/27.

4.1

Input support

Malawi has subsidised fertiliser for smallholders under successive programmes. The Affordable Inputs Programme ran from 2020/21, and the government committed to 2.47 million beneficiaries in 2022/23, when farmers contributed MWK 15,000 per bag2. The programme reached 1,270,808 beneficiaries in 2024/25. For 2025/26 the target was 1.5 million and the preliminary count 1.0 million, and the target for 2026/27 is 1.0 million3. The 2026/27 budget names the line the Fertilizer Input Subsidy Program, and the Ministry's 2026/27 seed tender refers to the Farm Input Subsidy Program14. In the IHS6, 22.0% of agricultural households were enrolled in the 2024/25 programme5.

Budgets have varied. The subsidy line was approved at K161.3 billion for 2024/25 and revised to K131.6 billion, and approved at K111.45 billion for 2025/26 and revised to K196.5 billion1. The approved 2026/27 amount of K111.45 billion, about US$63.8 million at the end-August 2026 rate, includes K102.0 billion for fertiliser16. The Ministry of Agriculture's vote rises to K971.4 billion in 2026/27, including a new water programme7. FEWS NET expected about 600,000 beneficiaries for 2026/278.

Budget for the fertiliser input subsidy
Input subsidy line in the national budget, MWK billion, fiscal years 2024/25–2026/27
Source: MoFEPD — Financial Statement 2026/27, fiscal years April–March. The line was called the Affordable Inputs Program in 2024/25 and the Fertilizer Input Subsidy Program from 2025/26. Revised estimates are not audited outturns. The approved 2026/27 amount of K111.45 billion is about US$63.8 million at the end-August 2026 rate (own calculation)6.
Budget of the Ministry of Agriculture
Vote 190, MWK billion, fiscal years 2023/24–2026/27
Source: MoFEA · MoFEPD — Programme-based budget documents. The 2026/27 vote includes a new water resources programme of K145.3 billion, which earlier votes did not contain.
Commercial fertiliser prices
Mean retail price across WFP-monitored markets, MWK per 50 kg bag, November 2020 – September 2026
Source: WFP VAM / HDX — Own calculation of the mean of market prices in the WFP dataset (urea 69, 32, 79 and 73 markets, NPK 68, 27, 78 and 73 markets). The dataset has no fertiliser prices from November 2021 to February 2025.
Input subsidy budget and beneficiaries
Fiscal yearName in the budgetApproved (MWK million)End-year revised (MWK million)Beneficiaries
2022/23Affordable Inputs Programme109,400–2.47 million (commitment)
2024/25Affordable Input Program161,285131,5851,270,808 (actual)
2025/26Fertilizer Input Subsidy Program111,450196,4631.5 million target, 1.0 million preliminary
2026/27Fertilizer Input Subsidy Program111,450–1.0 million (target)
Source: IFPRI MaSSP · MoFEPD — Fiscal years run from April to March. Revised estimates are not audited outturns. The 2025/26 name is as shown in the 2026/27 Financial Statement. FEWS NET assumed about 600,000 beneficiaries for 2026/278. The farmer contribution was MWK 7,500 per bag in 2021/22 and MWK 15,000 in 2022/232.
Agriculture in the national budget, 2023/24–2026/27
Item2023/242024/252025/262026/27
Ministry of Agriculture, Vote 190, approved (MWK million)360,818.33465,874.44667,750.22971,361.86
Vote 190, revised (MWK million)399,800.27–812,741.69–
Mega Farms sub-programme, approved (MWK million)378.893,685.236,498.3044,721.24
Maize purchases, approved (MWK million)–22,00060,00060,000
Input subsidy, approved (MWK million)–161,285111,450111,450
Source: MoFEA · MoFEPD — The 2026/27 Vote 190 includes a new water resources programme of MWK 145,321.37 million. The Mega Farms line was revised to MWK 344.52 million in 2025/26. The agriculture pillar of MIP-1 receives K924.1 billion in 2026/27, 8.42% of the budget11.
4.2

Maize marketing, ADMARC and the strategic grain reserve

The government announces a minimum farm-gate price for maize each season under the Agriculture (General Purposes) Act. The price was K500 per kg in 2023, K650 in 2024, K1,050 in 2025 and K900 in 20261213141516. According to its website in October 2026, ADMARC Limited was 99% owned by the government and had 240 markets and 400,000 tonnes of storage1718. In 2026 the National Food Reserve Agency bought maize at the minimum price of K900 per kg, and ADMARC resumed maize purchases in June 20268. In June 2024 the strategic grain reserve held 15,000 tonnes against a minimum threshold of 217,000 tonnes, and the government allocated MWK 22 billion to the Agency for restocking19. In July 2026 the reserve held about 82,000 tonnes carried over and had bought 13,000 tonnes towards a target of 108,000 tonnes8. The government planned to import 200,000 tonnes of maize from Zambia between November 2025 and March 202620.

From input subsidy to the grain reserve
The public maize chain, 2026 marketing season
Inputs
K111.45 bnsubsidy budget 2026/27
1,270,808 beneficiaries in 2024/253
Farmer
3.30 Mtmaize harvested (2025/26)
APES final estimate21
ADMARC and NFRA
K900per kg minimum price
NFRA buys at this price, reserve target 108,000 t8
Market
K960per kg retail (Aug 2026)
national average22
Source: MoFEPD · IPC · FEWS NET · IFPRI
Minimum farm-gate price for maize
Government minimum price, MWK per kg, 2023–2026 marketing seasons
Source: IFPRI — In 2026 the National Food Reserve Agency bought maize at the minimum price of K900 per kg, and ADMARC resumed maize purchases in June 20268.
Public maize marketing and reserves
DateItemValue
June 2024Strategic grain reserve stock15,000 t (minimum threshold 217,000 t)
August 2024Purchases by ADMARC and NFRA in the 2024 season31,000 t and 35,000 t
Nov 2025 – Mar 2026Planned maize imports from Zambia200,000 t
2026Minimum farm-gate price for maize, paid by NFRAMWK 900 per kg
July 2026NFRA stocks carried over and purchase target82,000 t, target 108,000 t
Source: FEWS NET — FEWS NET reports of Ministry and agency figures.
4.3

Food security and the 2024 drought

The President declared a state of disaster in 23 of 28 districts on 23 March 2024, when the government estimated that about 44% of the maize area had been severely affected24. The national response appeal of April 2024 required US$446.7 million, of which US$158.6 million for agriculture, and had a funding gap of US$425.1 million at publication25. The number of people in IPC Phase 3 or above in the lean season rose from 1.5 million in 2021/22 to 6.2 million in 2024/25 and is projected at 2.6 million for October 2026 – March 20272621. A further state of disaster was declared in November 2025 for areas affected by dry spells in the 2024/25 season27.

Maize harvest against the five-year average
Maize production as % of the five-year average quoted by the source
Above averageBelow average100% = five-year average
2023/24 (second-round estimate)
77.1%
2025/26 (final estimate)
95%
Source: FEWS NET · IPC — Own calculation for 2023/24 (2,926,190 t against an average of 3,797,096 t). The IPC states that the 2025/26 harvest was 5% below the five-year average.
People in acute food insecurity in the lean season
People in IPC Phase 3 or above, October–March, million, 2021/22–2026/27
Source: IPC · FAO GIEWS — Malawi IPC analyses. The 2024/25 figure is the updated assessment (the projection was 5.69 million). The 2026/27 projection is 14% of the analysed population.
Acute food insecurity, IPC Phase 3 or above
PeriodPeopleShare of analysed population (%)
Oct 2021 – Mar 20221,496,3948
Oct 2022 – Mar 20233,818,55420
Oct 2023 – Mar 20244,402,00022
Oct 2024 – Mar 2025 (updated)6,188,37930
May – Sep 20252,970,00016
Oct 2025 – Mar 2026 (projected)4,002,00022
Apr – Sep 20261,935,00010
Oct 2026 – Mar 2027 (projected)2,613,00014
Source: IPC — The October 2025 – March 2026 projection included about 8,000 people in Phase 426.
4.4

Warehouse receipts, the commodity exchange and tobacco marketing

According to its website, the Agricultural Commodity Exchange for Africa (ACE), founded in 2006 from an initiative of the smallholder association NASFAM, runs a warehouse receipt system and auctions under a licence from the Registrar of Financial Institutions29. In 2025 the system had 126 certified storage sites with 595,552 tonnes of capacity, 35 of them owned by farmer organisations, and over the 2022/23–2024/25 seasons 557,322 tonnes were deposited and eight banks financed K221 billion of receipts30. The Warehouse Receipts Act of 2017, assented on 24 January 2018, comes into force on a date set by ministerial notice, and no such notice was found3132. The Export Mandate Regulations of 2021 require listed grains, legumes and oilseeds to be exported through or certified by a licensed commodity exchange33.

In the 2026 season tobacco was sold on four auction floors and under contract farming34. The Tobacco Commission announced production ceilings for 2026/2735, and the Minister of Agriculture set minimum prices in US dollars by grade under the Tobacco Industry Act of 2024 in April 2024 and April 20253637. In the 2026 season rejection rates on the auction floors reached 95–100% of daily sales in late April and fell to about 50% by September3834.

How a warehouse receipt loan works
ACE warehouse receipt system, 2022/23–2024/25 seasons
Farmer or trader
557,322 tdeposited
grain and legumes30
Certified warehouse
126storage sites
595,552 t of capacity30
Receipt
issued and traded through ACE29
Bank
K221 bnfinanced by eight banks
against receipts30
Source: ACE
595,552 t
of certified storage in the ACE warehouse receipt system (2025)30
2 Feb 2018
Warehouse Receipts Act published, commencement notice not found by October 202631
87.5%
of the 2024/25 licensed tobacco volume under contract farming (own calculation)39
Warehouse receipt system of ACE
IndicatorValue
Certified storage sites126
Certified capacity (t)595,552
Sites owned by farmer organisations35
Commodity deposited, 2022/23–2024/25 seasons (t)557,322
Receipts financed by eight banks, 2022/23–2024/25 (MWK billion)221
Source: ACE — Cumulative over three seasons, as reported by ACE in October 2025.
4.5

Market, data and advisory institutions

ADMARC Limited
Company 99% owned by the government that buys and sells maize and other crops, with 11 divisions, 240 markets, 9 depots and 400,000 tonnes of storage1840. It was incorporated as a company in 2003 after the repeal of the ADMARC Act, with the government holding 99% of the shares17. It bought 1,122 tonnes of cotton in 2024/25 against a target of 10,000 tonnes41. A new board took office in January 2026, and ADMARC resumed maize purchases in June 2026408.
admarc.co.mw
National Food Reserve Agency (NFRA)
Holds the strategic grain reserve. Its stock was 15,000 tonnes in June 2024 against a minimum threshold of 217,000 tonnes, and in July 2026 it held about 82,000 tonnes carried over, with a purchase target of 108,000 tonnes198. The 2026/27 budget allocates K60 billion for maize purchases11.
Agricultural Commodity Exchange for Africa (ACE)
Commodity exchange founded in 2006 from an initiative of NASFAM, licensed by the Registrar of Financial Institutions, which runs a warehouse receipt system, auctions and a trade platform29. Its system had 126 certified storage sites with 595,552 tonnes of capacity in 2025, and banks financed K221 billion of receipts over three seasons to 2024/2530.
www.aceafrica.org
TAMA Farmers Trust
Tobacco grower membership organisation that operates grading centres and satellite depots for its members42.
www.tamalawi.com
Malawi Investment and Trade Centre (MITC)
Investment and export promotion agency that issues export certificates and maintains an exporters directory43.
mitc.mw
National Statistical Office (NSO)
Government department for official statistics under the Statistics Act of 201344. It publishes national accounts on the 2017 base, the consumer price index, the Integrated Household Surveys and, with the Ministry of Agriculture, the National Census of Agriculture 202545464748.
www.nsomalawi.mw
Department of Agricultural Planning Services
Collects and maintains agricultural statistics, monitors sector programmes and coordinates marketing and food security programmes49. The Ministry's Agricultural Production Estimates Survey gives crop estimates in three rounds each season23.
www.agriculture.gov.mw/planningservices
Department of Agricultural Research Services
Ministry department for agricultural research, which issued the National Seed Policy of April 20185051.
www.agriculture.gov.mw/researchservices
IPC Technical Working Group, Malawi
Leads the Integrated Food Security Phase Classification analyses, which projected 2.61 million people in Phase 3 or above for October 2026 – March 202721.

Sources cited on this page

  1. Budget Document No. 3, Approved 2026/27 Financial Statement (PDF) — Ministry of Finance, Economic Planning and Decentralization, Malawiverified
  2. Policy Note 47, Pricing farmer contributions under AIP, December 2022 (PDF on CGSpace) — International Food Policy Research Institute, Malawi Strategy Support Programverified
  3. Budget Document No. 5, 2026/27 Approved Programme Based Budget, Central Ministries, Vote 190 Ministry of Agriculture, Irrigation and Water Development (PDF) — Ministry of Finance, Economic Planning and Decentralization, Malawiverified
  4. Request for Bids, Supply and Delivery of 2026/2027 Maize Seed under Farm Input Subsidy Program (FISP), RFB 019/NCB/FISP/G/2026-2027/02, issued 26 June 2026 (PDF) — Ministry of Agriculture, Irrigation and Water Development, Malawiverified
  5. Sixth Integrated Household Survey (IHS6) 2024-2025 Cross-Section Report (PDF, June 2026) — National Statistical Office of Malawiverified
  6. IMF, Exchange Rates (ER) dataset – Malawi, domestic currency per US$ (end of period and period average) — International Monetary Fund (IMF), Statistics Departmentverified
  7. Approved 2026/27 Programme Based Budget – Central Ministries, Vote 190 (PDF) — Ministry of Finance, Economic Planning and Decentralizationverified
  8. Malawi Food Security Outlook Update August 2026 - January 2027, information as of 28 August 2026 (HTML) — Famine Early Warning Systems Networkverified
  9. 2024/25 Approved Programme Based Budget Document, Vote 190 Ministry of Agriculture (PDF) — Ministry of Finance and Economic Affairsverified
  10. Malawi - Food Prices dataset, wfp_food_prices_mwi.csv, resource last modified 11 Oct 2026 (CSV) — World Food Programme via Humanitarian Data Exchangeverified
  11. Budget Document No. 3 – Approved 2026/27 Financial Statement (PDF) — Ministry of Finance, Economic Planning and Decentralizationverified
  12. IFPRI Malawi monthly maize market report, May 2023 (PDF, CGSpace) — International Food Policy Research Institute, Malawiverified
  13. IFPRI Malawi monthly maize market report, April 2024 (PDF, CGSpace) — International Food Policy Research Institute, Malawiverified
  14. IFPRI Malawi monthly maize market report, April 2025 (PDF, CGSpace) — International Food Policy Research Institute, Malawiverified
  15. IFPRI Malawi maize market report, May 2026 (PDF, CGSpace) — International Food Policy Research Institute, Malawiverified
  16. Government Notice No. 19 of 2020 – Agriculture (General Purposes) (Minimum Prices for Agricultural Crops) Regulations, 2020 (PDF) — Government of Malawi (Laws.Africa Commons copy)verified
  17. ADMARC Limited website – home (HTML) — ADMARC Limitedverified
  18. About ADMARC Limited and Warehousing pages (HTML) — ADMARC Limitedverified
  19. Malawi Food Security Outlook June 2024 - January 2025 (HTML) — Famine Early Warning Systems Networkverified
  20. Malawi Key Message Update January 2026 (HTML) — Famine Early Warning Systems Networkverified
  21. Malawi IPC Acute Food Insecurity Analysis April 2026 - March 2027, published 7 August 2026 (PDF) — Integrated Food Security Phase Classification, Malawi Technical Working Group (copy hosted by IFPRI Food Security Portal)verified
  22. IFPRI Malawi maize market report, August 2026 (PDF, CGSpace) — International Food Policy Research Institute, Malawiverified
  23. Malawi Food Security Outlook October 2024 - May 2025 (HTML) — Famine Early Warning Systems Networkverified
  24. Press release, The United Nations and Humanitarian Partners appeal for US$136.5 million to assist people affected by El Niño-induced drought in Malawi, 24 July 2024 (PDF) — United Nations Malawi, Resident Coordinator's Officeverified
  25. National El Niño Induced Prolonged Dry Spells and Floods Response Appeal, April 2024 (PDF on UN Malawi site) — Government of Malawi, Office of the President and Cabinet, Department of Disaster Management Affairsverified
  26. Malawi IPC Acute Food Insecurity Analysis May 2025 - March 2026, published 17 October 2025 (PDF) — Integrated Food Security Phase Classification, Malawi Technical Working Group (copy hosted by IFPRI Food Security Portal)verified
  27. Government Notice No. 100 of 2025 – Disaster Risk Management (Natural Calamities) (Disaster Declaration) Notice, 2025 (PDF) — Government of Malawi (Gazettes.Africa copy)verified
  28. GIEWS Country Brief Malawi, reference date 16 December 2025 (PDF) — FAO Global Information and Early Warning System on Food and Agricultureverified
  29. ACE website – home (HTML) — Agricultural Commodity Exchange for Africaverified
  30. ACE in Focus, Building structured agricultural trade in Malawi, collection of articles 2023-2025, October 2025 (PDF hosted by AFM) — Agricultural Commodity Exchange for Africaverified
  31. Warehouse Receipts Act, 2017, Act No. 3 of 2018 (PDF) — Government of Malawi (Laws.Africa Commons copy)verified
  32. Legislation listing filtered for commencement notices (HTML) — MalawiLII (Laws.Africa)verified
  33. Government Notice No. 32 of 2021 – Control of Goods (Export Mandate) Regulations, 2021 (PDF) — Government of Malawi (Gazettes.Africa copy)verified
  34. Tobacco Markets to close September 10, 2 September 2026 (HTML) — Tobacco Commission, Malawiverified
  35. Commission to set production ceilings, 12 June 2026 (HTML) — Tobacco Commission, Malawiverified
  36. Government Notice No. 23 of 2024 – Tobacco Industry (Tobacco Minimum Prices) Order, 2024 (PDF) — Government of Malawi (Laws.Africa Commons copy)verified
  37. Government Notice No. 28 of 2025 – Tobacco Industry (Tobacco Minimum Prices) Order, 2025 (PDF) — Government of Malawi (Gazettes.Africa copy)verified
  38. Agriculture Minister Meets Commission and buyers over tobacco rejection, 30 April 2026, and Tobacco growers cancel protests, 27 April 2026 (HTML) — Tobacco Commission, Malawiverified
  39. Licensing Data, 2024-2025 Licensing Summary (HTML) — Tobacco Commission, Malawiverified
  40. New ADMARC Board pledges to Restore Food Security Role, 22 January 2026, and Committee to lobby for increased ADMARC funding, 18 February 2026 (HTML) — ADMARC Limitedverified
  41. ADMARC drives cotton value chain, 19 December 2025 (HTML) — ADMARC Limitedverified
  42. TAMA Farmers Trust website – home (HTML) — TAMA Farmers Trustverified
  43. MITC website – home (HTML) — Malawi Investment and Trade Centrelanding page verified
  44. NSO website – home (HTML) — National Statistical Office of Malawiverified
  45. GDP Summary Tables, GDP by activity 2017-2023, 2017 base year (XLSX, attached to 'National Accounts' release of 24 Feb 2025; identical file also attached to 14 Dec 2024 release, media 463) — National Statistical Office of Malawiverified
  46. Stats Flash, Consumer Price Indices August 2026 (PDF, issued 17 Sep 2026) — National Statistical Office of Malawiverified
  47. Monetary Poverty and Inequality Report, IHS6 2024/25 (PDF, published 14 Oct 2026) — National Statistical Office of Malawiverified
  48. National Census of Agriculture (NACA) 2025 Report (PDF, released 16 Mar 2026) — National Statistical Office of Malawiverified
  49. Department of Agricultural Planning Services (HTML) — Ministry of Agriculture, Malawiverified
  50. Department of Agricultural Research Services page (HTML) — Ministry of Agriculture, Malawilanding page verified
  51. National Seed Policy, April 2018 (PDF) — Ministry of Agriculture, Irrigation and Water Development (FAOLEX copy)verified
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