The Malawi private-owned sole agricultural produce market setter, Auction Holding Commodity Exchange (AHCX) is urging farmers across the nation to increase more production in legumes as they are fetching higher prices than other crops in local and international markets.
The call comes amid low prospects of agricultural produces due to floods and dry spell which hit most parts of the country, based on the second round of 2014/2015 Agricultural Production Estimates Survey (APES) which was released last month, April, 2015.
For instance, cash crops and some legumes production have gone down including groundnuts 21.8%, cotton 31.4%, tobacco 5.3%, and soya beans 4.0% while pulses, beans, pigeon peas and wheat have a slight increase by 0.6%, 0.1%, 4.0% and 13.7% respectively.
In an exclusive interview with AHCX’s Public Relations Officer, Maggie Msiska on this year’s marketing season prospects, she assured farmers of potential buyers on their produces especially legumes which are highly demanded on local and international markets.
Msiska cited that groundnuts, sugar beans and pigeon peaces, and soya beans are needed much in Eastern Africa ( Kenya), SADC region and Asia respectively which will give farmers opportunities to sell their crops at higher prices than last.
About 5600 metric tones of legumes have passed through the AHCX between 2013 and 2014 but Msiska implies the need for more crops with an improvement in their quality as to fetch better prices.
“We aren’t satisfied with the current flow of legumes to our warehouses because the demand is high on these crops locally and abroad. These crops include peas, groundnuts, soya beans, pigeon peas, sugar peas, therefore, farmers should take advantage with the trends.
“With the forward contracts launched recently, there has been excitement among farmers to grow legumes as their returns are also enormous hence the encouragement for them to venture into legume farming”, assures Msiska.
On forward contracts initiative, Msiska alluded that farmers are assured of better markets with better prices as they negotiate with buyers at what prices for a particular crop is traded in line with set of minimum charges.
“Forward contract is an innovation for farmers to demand their own prices towards their crops from buyers which later farmers are assured of minimum price which AHCX set traded globally. With an agreement arrangement with banks, farmers are allowed to get loans for their production as the collateral is based on what they will produce in line with market prices.
“Its, in this regard, we are encouraging farmers across the nation to venture into legumes farming through forward contracts while keeping in mind managing their produces to required standards as to compete