Country Overview

Fertilizer Market

Fertilizer Prices

Market Comments

AUGUST 2021

Market Comments

Fertilizer Prices

Fertilizer prices have hit an all-time high in Malawi with a 50 kg bag now selling between $40 and $50 which is almost double the prices of 2020. About 80 percent of Malawi farmers can no longer afford to buy fertilizers. The rise in prices is likely to affect production. Agriculture experts say this would likely lead to higher costs for government subsidized fertilizers under the Affordable Inputs Program (AIP), in which ultra-poor farmers buy at $6 dollars per 50 kg bag. The government said that the price hike is the result of actions by a cartel trying to undermine the government’s AiP efforts and therefore vows to intervene in the fertilizer price rise. However, the Fertilizer Importers Association in Malawi, a group of fertilizer importers, justified the current price rise indicating that the rise is dictated by the international market which is facing the rise in fertilizer raw materials like phosphate.

Fertilizer Availability

There could potentially be demand destruction with high prices dissuading the smallholder farmers from accessing the product.

Other Key Information

The Harmonized Fertilizer Regulatory Framework Project

A new initiative, Harmonized Fertilizer Regulatory Framework (HFRF) project, aimed at establishing a harmonized framework that will improve regulation of fertilizers across Southern Africa, has been launched in Malawi by the Food and Agriculture Organization of the United Nations (FAO), the Southern Africa Development Community (SADC), and the Government of Malawi. This regional initiative is being implemented in the 16 SADC Member States. The project will go a long way to strengthen the fertilizer regulatory framework by putting in place quality control standards and enforcement mechanisms at the regional level with input from all the 16 SADC countries. The lack of a regulatory framework that harmonizes the trade and use of fertilizers in SADC Member States means that each country functions with different regulatory frameworks. By establishing the HFRF, the project will therefore help to amalgamate ongoing efforts on fertilizer quality control and enforcement of standards across the region. Additionally, the program seeks to enhance integration and improve access to regional fertilizer markets. The sustainability of this initiative is assured because countries will participate in the framework development and align their national fertilizer regulatory frameworks to the agreed regional framework.



JULY 2021

Market Comments

Fertilizer prices

Fertilizer prices in Malawi have been on a rising trend. This has led the Ministry of Agriculture to reduce the beneficiaries of the 2021 season’s Affordable Input Program (AIP) to about 2.7 million from last season’s 3.8 million farmers. Beneficiaries who will be targeted are vulnerable smallholder farmers, those not benefiting from any other agriculture supporting programs, people with disabilities and those chronically ill. Under the AIP, each beneficiary purchases two 50 kg bags of fertilizer at a price of K4,495.00 per bag. Currently, a bag of fertilizers costs over K20, 000.

Fertilizer availability

SFFRFM Tender
The Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM) has issued another tender to source different fertilizers. The SFFRFM floated a tender earlier that closed on 27 May to source 250,000t of NPK and Urea, tonnage in which is equally split between the two fertilizers. It was reported on 7 June 2021 that the SFFRFM is planning to top up this volume. It has now been confirmed but also includes other fertilizers.



JUNE 2021

Market Comments

Generally, prices of nitrogen and phosphates fertilizers have been stable albeit at higher levels Year-over-Year (YoY). This has been majorly driven by strong freight assessments caused by rebounding global trade recovery as well as strong demand from traditional global markets namely India and Latin America.

Freight assessments, from East Africa’s main source market, Middle East, have been indicated at upwards of $50 since end of Q1 up from the usual average figure of $30/mt +/-. This holds true for most of the major supply routes globally.

Fertilizer prices

Prices of most fertilizers in Malawi have dropped because of low demand. The main crops such as maize, rice, and sorghum which were planted during the long rain season are being harvested.

Fertilizer availability

No shortages have been reported although discharge operations have been slightly encumbered by COVID-19 screening of the crew on arrival.

Other fertilizer updates

Impacts of Fertilizer subsidy largesse

Extension services in Malawi are suffering badly under the weight of fertilizer subsidy largesse. Funding patterns in the past 17 years that Malawi has implemented fertilizer subsidies show that while extension services, like all the pillars in the Ministry of Agriculture, have been starved of funding, fertilizer subsidy programme has been swimming in public money. In that period, government allocated over K700 billion to fertilizer subsidy alone, with the allocation grabbing between 30 and 59 percent of the total agriculture budget in more than 12 of the 17 years.

SFFRFM Tender

The Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM) has issued another tender to source different fertilizers. The new tender closes on 20th July with validity for 90 days after tender close. The SFFRFM’s earlier tender closed on 27 May to source 250,000t of NPK and Urea, tonnage which was equally split between the tender requirements.

AIP demand and exit

The government of Malawi is seeking an exit strategy for the Affordable Input Program. Claims are that the program is not sustainable in the long run. However, for this year, it is considering to increase its demand to 400,000 tons.



MAY 2021

Market Comments

Fertilizer Prices

The prices of most planting fertilizers in Malawi are generally low because of low demand since most crops such as maize, rice, and sorghum are in their growth stages and require no planting fertilizers at this stage. The prices of top-dressing fertilizers are high because of high demand. Most crops are at the growth stages and require top-dressing fertilizers.

Fertilizer Availability

Fertilizer is available in the country, so no shortages have been reported. Despite the restrictions placed on borders, fertilizer is treated as an essential commodity so it is allowed for transportation across borders.



APRIL 2021

Market Comments

Fertilizer Prices

The prices of most planting fertilizers are generally low because of low demand. This is because most crops in Malawi such as maize, rice, and sorghum are in their growth stages and require no planting fertilizer at that stage. Rather, the prices of top-dressing fertilizers are high because of high demand as most crops in Malawi are at the growth stages and require top dressing fertilizer.

Fertilizer Availability

Fertilizer is available in the country because of the roll-out of the Government’s Affordable Inputs Program for the 2020/21 cropping season, which provided access to subsidized seeds and fertilizers for 3.8 million smallholder farmers. Additionally, fertilizer is treated as an essential commodity and is therefore allowed to be transported across borders even with the pandemic-inspired restrictions in place.

Other Key Information

As the 2020-2021 maize growing season is coming to an end in most parts of Malawi, agriculture experts have advised farmers to take good care of the harvest to sustain themselves with food and revenue throughout the year. In an interview with Xinhua, the Program Manager for Blantyre Agricultural Development Division, Eric Haraman said there is a need for farmers across the country to follow recommended harvesting, storage, and marketing guidelines provided by the government to ensure that they are food-secure all year round.

Malawi’s President, Lazarus Chakwera, has proposed for the country to move away from growing tobacco, although it contributes to more than 60 percent of the country’s earnings because he sees no future in continuing to grow it. At the opening of the tobacco selling season, Chakwera said Malawi should switch to other cash crops like cannabis, which was legalized last year for industrial and medicinal use. He said Malawi’s tobacco industry is dying largely because of low demand on the international market following the ongoing global anti-smoking campaigns, championed by the World Health Organization.



MARCH 2021

Market Comments

Fertilizer Prices

The price of NPK was high at the beginning of March because of high demand due to planting of wheat which began in February and continued through March. Planting of wheat usually requires NPK. The prices of other fertilizers are generally low because of low demand as most crops in Malawi such as maize, rice, and sorghum are in their growth stages and require little to no fertilizer at this stage.

Fertilizer Availability

Fertilizer is available in the country because of the roll‑out of the Government’s Affordable Inputs Programme for the 2020/21 cropping season, which provided access to subsidized seeds and fertilizers for 3.8 million smallholder farmers. Additionally, despite the restrictions placed on borders, fertilizer is treated as an essential commodity, so it was allowed to be transported across borders.

Other Key Information

On 15 March 2021, the Ministry of Trade announced a temporary lifting of the maize export ban, which had been in place since February 2018 (FPMA Food Policies) to help stabilize national grain supplies amid concerns over the weather-reduced harvest in 2018. The Government has decided to issue export licences following the update of the national food balance sheet by the Ministry of Agriculture in January 2021 that indicated the country would have a sizeable maize surplus built up from the bumper maize outputs in 2019 and 2020. The export licences will be granted to traders that have proof of maize stocks from the previous cropping season and will be valid for a three-month period, with an aggregate national quota of 350 000 tonnes. The measure aims to free up storage space and avoid wastage ahead of the upcoming 2021 maize harvest, which is set to start in April.



FEBRUARY 2021

Market Comments

Fertilizer Prices

The price of NPK fertilizer has increased because of high demand due to planting of wheat which began in February and continues through March and requires NPK fertilizers. The prices of other fertilizer products are generally low due to low demand because most crops in Malawi such as maize, rice and sorghum are in their growth stages and require little to no fertilizer at this stage.

Fertilizer Availability

Fertilizer is available in the country because of the Affordable Input Program (AIP) which was designed by the government to support 3,788,105 smallholder farmers each of whom is to receive a package comprising of 2 bags of 50 Kilogram fertilizers and either 5 Kg of hybrid seed or 7 Kg of ODV maize seed or 7 Kg of rice seed or 7 Kg of sorghum seed. As of February 2021, over 3,400,936 household farmers have so far redeemed their 2 bags of fertilizers. This means that 6,801,872 bags of both NPK and Urea fertilizers have been sold to farmers across the country.

Other Key Information

The Ministry of Agriculture is seriously notifying all stakeholders plying their trade in the 2020/2021 AIP, starting with farmers, suppliers, and its offices, that the program will be closing on 20th February 2021. The Ministry is advising all farmers who are still having inputs in their National IDs to make sure that they redeem them either to private suppliers in their localities, to ADMARC, or the Smallholder Farmers Fertilizer Revolving Fund of Malawi, which have been very vital in providing mobile vending services across the country.



JANUARY 2021

Market Comments

Fertilizer Prices

Fertilizer prices have reduced because of low demand due to planting of most crops between September and December, so less fertilizer is required.

Fertilizer Availability

Fertilizer is available throughout the country because of the Affordable Input Program introduced to help farmers get access to affordable fertilizer and other farm inputs. Around 2.9 million households across the country have so far benefited from the program representing 77 percent. Since January 4, 2021, the number of fertilizer and seed selling points has increased from 677 to 1, 407 to help farmers easily access the inputs. On fertilizer cumulative sales, NPK has sold 147, 671 MT representing 78 percent, while Urea sold 140, 964 MT representing 74 percent. Total fertilizer sales were 288, 635 MT representing 76.2 percent while seed sales were 11,738 MT representing 61.3 percent. The government has contracted 83 private fertilizer suppliers and two public institutions to supply and retail fertilizer to Programme beneficiaries. The government also has contracted 11 seed suppliers to supply and retail their seed to targeted beneficiaries.



DECEMBER 2020

Market Comments

Fertilizer Prices

There was decreased fertilizer prices in December because of the Affordable Input Program that aimed at giving farmers access to affordable fertilizer and other agricultural inputs. Sales of fertilizer under the Affordable Input Program reached 68% by Wednesday, December 23, 2020. The number of selling points decreased from 1,835 December 22, 2020 1,821 on December 23, 2020. About 2, 825 MT of NPK and 2,752MT of Urea were sold.

Fertilizer Availability

Fertilizer was available throughout the country despite high demand caused by planting of cereal crops that took place in December. The availability was reinforced by the Affordable Input Program introduced to help farmers get access to affordable fertilizer and other farm inputs.

Other Key Information

A group of tobacco farmers in Malawi filed a claim in British courts, alleging that years of worker exploitation and child labor violations are among the real reasons why two tobacco firms have been so profitable. Those working on the tobacco farms in the central and northern parts of Malawi are essentially living in slavery while the combined revenues of the companies in 2019 amounted to £9.9 billion (more than US$13 billion).

Highlights of 2020 Comments

Fertilizer Prices

At the beginning of the first quarter, NPK prices dropped but Urea and CAN prices increased because of high demand. At the beginning of the second quarter, fertilizer prices stabilized and even decreased because of end of the planting season. At the beginning of the third quarter, prices increased because of the planting that took place in September. At the end of the same quarter, prices were still high because of the planting of 2021 cereal crops such as maize, rice and sorghum that was underway.

Fertilizer Availability

Fertilizer was available throughout the year, so no shortage was reported despite the COVID-19 pandemic. To cushion farmers against effects of the pandemic, the Government implemented the Affordable Inputs Programme. This intervention aimed at giving 4.28 million smallholder farmers access to fertilizers at a fixed subsidized price of MWK 4 495 per 50 kg, while farmers also paid a subsidized price of MWK 2 000 for a 5‑7 kg bag of seeds (either maize, rice, or sorghum). In the previous cropping season, an estimated 0.9 million farmers were targeted with an input subsidy scheme. Malawi Relief Fund UK also donated 5,000 bags of fertilizer to rural farmers in Balaka.

 

Other Key Information

Agriculture received 474 million U.S. dollars in the 2020/2021 Financial Year budget. The Government intended to spend part of this amount on the implementation of the Affordable Input Program (AIP) in which 4.2 million farming households in the country accessed subsidized fertilizer and maize seed.



NOVEMBER 2020

Market Comments

Planting of the 2021 cereal crops such as maize, rice and sorghum is underway and is expected to end by end of December 2020. Fertilizers for planting are currently in demand. Agrodealers have registered increased sales.

To cushion farmers against effects of COVID-19, the Government is implementing the Affordable Inputs Programme. This intervention aims to provide 4.28 million smallholder farmers with access to fertilizers at a fixed subsidized price of MWK 4 495 per 50 kg, while farmers would also pay a subsidized price of MWK 2 000 for a 5‑7 kg bag of seeds (either maize, rice, or sorghum). In the previous cropping season, an estimated 0.9 million farmers were targeted with an input subsidy scheme. Malawi Relief Fund UK also donated 5,000 bags of fertilizer to rural farmers in Balaka.



SEPTEMBER 2020

Market Comments

Farmers in different regions are busy preparing their lands for planting which begins in September, so agrodealers are stocking their shops with fertilizers. Sales volumes are high because demand for fertilizers is currently high.

New Developments

To improve nutrition, seed breeders have released about 10 varieties of bio-fortified hybrid maize rich in vitamin A. Some of these bio-fortified maize varieties released for distribution have taken three years to develop under the Agricultural Productivity Programme for Southern Africa (APPSA) project. These varieties will help farmers overcome hunger, malnutrition, prolonged drought as well as disease and pest attacks made worse by climate change. They bill the new grain more resilient and nutritious than traditional alternatives. The new releases personify an increased focus on agricultural technologies that help farmers harvest more despite climate change. Christened Pro Vit A varieties, the “orange maize” is increasingly being adopted by local farmers and food processors, because they have been proven to be not only nutritious but also climate smart. Governments perceive orange maize varieties as a less costly way of managing vitamin A deficiency than buying supplements or vaccines, as they offer consumers vital nutrients through daily meals.

Subsidized Fertilizer

Agriculture received 474 million U.S. dollars in the 2020/2021 Financial Year budget. The Government intends to spend part of this amount on the implementation of the Affordable Input Program (AIP) in which 4.2 million farming households in the country will access subsidized fertilizer and maize seed.



JULY 2020

Market Comments

Fertilizer prices are stable and even decreasing mainly because the growing season has just ended so only few farmers who are cultivating irrigated crops are buying fertilizers in small quantities.

As COVID 19 continue to hit the country, fertilizer sales and prices will be greatly affected since money circulation will be very low. Currently there is no shortage of fertilizer in the market and farmers can access fertilizers without a problem.

Most NPK prices decreased by an average of -6% in 12 locations. However, prices remained constant in 11 locations and there was 4% price increase in 2 locations.

Most CAN prices remained constant. However, there was a 1% price increase in 1 location.

Most Urea prices were stable. However, there was a 6% price increase in 1 location.



JANUARY 2020

Market Comments

The rains are still ongoing in the country. Some areas are even experiencing flash floods and some crops have been washed away. Urea is on high demand while NPK sales have dropped. This has led to increased price of Urea. CAN sales have also increased compared to NPK. In most regions, fertilizer prices are almost the same. There is enough stock from suppliers possibly to meet demand.



DECEMBER 2019

Market Comments

The rains are ongoing in many parts of the country and smallholder farmers are busy in their fields. Farmers are mostly buying fertilizer by FISP and some by cash. There is a lot of fertilizer in the market, but sales are slow. This is because the government distributed a few fertilizer coupons. Also, poor economic conditions can be attributed to this. Most farmers are therefore unable to afford the fertilizers which are not on FISP. Smallholder farmers have been complaining that the FISP program was not rolled out well because most farmers did not receive the vouchers.

Suppliers have more fertilizer stock in most regions of the country which is higher than the demand. This has led to drop in fertilizer prices.



NOVEMBER 2019

Market Comments

The FISP program of fertilizers is currently rolling. Most regions in the country have experienced the rains. There is availability of fertilizers nationwide and in other regions where the rains began early, farmers have already planted maize. A fertilizer coupon is costing MK15,000 and the farmer tops up the balance. The coupons were distributed in good time giving farmers enough time to prepare for the season. Fertilizer prices have dropped because there is more stock in the market and there is high competition among suppliers. NPK is selling more than Urea.



OCTOBER 2019

Market Comments

Fertilizer sales have been affected due to economic crisis that affected the country, due to political wrangles over May 2019 Tripartite elections. People have been demonstrating for the past 3 months and during this period, many shops were closed, and others vandalized. Some farmers have started cultivating in preparation for the rainy season, which is expected to start next month, so farmers are buying fertilizer in bulk.

In all three (northern, southern and central) regions, sales volume has decreased, but there is no significant change in fertilizer prices. However, prices are expected to increase when it starts to rain, due to high demand.



SEPTEMBER 2019

Market Comments
The sales volume is still low in all three regions as few farmers are cultivating irrigated crops. Only few farmers are buying fertilizer in bulk as they prepare for rainy season. Fertilizer prices are stable just few changes. NPK is still leading in sales.
1. In Northern region, the sales is lower than in Central and Southern regions because its lowly-populated and its mountainous.
2. In Central region, the sales is higher than the northern region.
3. Southern region, has the highest volume of sales because it has many rivers and many farmers practice irrigation farming.



AUGUST 2019

Market Comments
The sales volume is still low in all three regions as few farmers are cultivating irrigated crops. Only few farmers are buying fertilizer in bulk preparing for rain season. Fertilizer prices are stable just few changes. NPK is still leading on volume of sales.
1. In northern region, the volume of sales is lower than in Central and Southern regions because its less populated and its mountainous.
2. In central region, the volume of sales is higher than the northern region.
3. Southern region has the highest volume of sales because it has many rivers and many farmers practice irrigation farming.



JULY 2019

Market Comments
Farmers are cultivating irrigated crops in many areas of the country. There is decrease on sales volume and this is because few farmers cultivating irrigated crops. NPK which is mainly used for irrigated crops has high volume of sales compared to other fertilizers. Some farmers already bought fertilizers in bulk as they wait for winter cropping affecting fertilizer sales on the market.
• In Central region, there is slight change in fertilizer prices especially for NPK which is high selling compared to Urea and CAN.
• In Southern region, there is decrease on sales volume of all fertilizers and the prices have remained the same.
• In Northern region, low volume of sales and insignificant change in fertilizer prices was registered.



JUNE 2019

Market Comments
The harvest is coming to an end in all regions and farmers who grow cash crops like maize and tobacco are still selling. Some farmers are cultivating irrigated crops. Fertilizer prices are changing as suppliers are receiving new stock. This is especially for NPK and CAN. The sales volume of NPK is increasing more than CAN because it is being used for irrigated crops.
Northern Region farmers have started cultivating irrigated crops and the fertilizer prices are changing depending on the suppliers. NPK and CAN sales volume is high compared to Urea. The same situation is registered in Southern and Central regions with very slight price difference.



MAY 2019

Market Comments
Farmers are harvesting their crops, 80% of farmers have harvested their crops. Tobacco is one of the main cash crop in Malawi and farmers are selling at Auction Floors where tobacco is sold, but farmers are complaining that customers are buying at a very low price. Maize is being sold but also at a lower price.
Fertilizer sales volume and prices are decreasing, but NPK is selling more than Urea and CAN, as farmers have started cultivating irrigated crops which they mainly use NPK. This usually affects fertilizer sales in dry season.
1. In the Northern region of Malawi, fertilizer sales are very low compared to Central and Southern regions because it is lowly populated compared to the two. This region is also mountainous and land for cultivation is small.
2. In Central Region, NPK sales is high compared to Urea and CAN. Few farmers are cultivating irrigated crop especially in districts like Dedza where Irish potato is grown on large scale.
3. In Southern region, NPK sales is high. Farmers have started growing irrigated crops.



APRIL 2019

Market Comments
Crops have matured awaiting harvesting in many parts of the country especially maize and tobacco. There is high decrease in fertilizer sales in the market and prices have remained constant. A bumper yield is expected this year compared to last year despite the effects of Cyclone Idai which swept crops and even displaced people in Chikwawa, Nsanje, some parts of Phalombe and other districts. In all the three affected districts, most farmers grow irrigated crop on small scale.
Most smallholder farmers in the country do not use farm machinery which translates to low usage of fertilizer. Fertilizer prices are determined by the forces of demand and supply.
1. In the northern region, the sales volume has decreased and NPK is now on high demand as farmers are now preparing for irrigation farming. The region uses small volume of fertilizer as it is lowly populated, and it is mountainous.
2. In central region, farmers are busy preparing their lands and NPK is on high demand compared to Urea and CAN as farmers are buying NPK for irrigation farming.
3. In southern region, NPK sales volume is higher compared to CAN and Urea. Farmers are busy preparing their lands for cultivation. In this region many smallholder farmers grow crops twice a year compared to the other regions. In many parts in the region fertilizer prices remain constant.



MARCH 2019

Market Comments
In most parts of the country, maize crop has matured and drying up especially in the Southern region. There are low sales for fertilizers, as Farmers have started preparing for dry season farming. Tobacco is also being harvested. Some part of the country are experiencing heavy rains leading to destruction of crops.
1. In the Northern region, fertilizer sales are decreasing because many crops have matured, and the rains just ended. There is no significant change in fertilizer prices. As for NPK, there is increased demand and sale as the dry season is approaching where NPK is mainly used for irrigated crops.
2. In Central region of Malawi, the rains were heavy but not as destructive as in the Southern region. The demand and the sales volume of NPK is high leading to increased prices as farmers prepare for the dry season.
3. The Southern region was mainly affected by flash floods and there was destruction of crops. The demand and sale of NPK is high as farmers are preparing for the dry season where they mainly use NPK for irrigation crops.
The death toll inflicted by floods in Malawi has risen sharply to 56 following search-and-rescue missions in the most remote affected areas. Powerful tropical storm Idai is poised to bring more rain and flooding to the country, which is already reeling from recent weather. Four days of non-stop rainfall swelled the Phalombe River in Southern region of Malawi until it burst through a long dike built last year for protection. The water spread across a large area to surrounding villages. Apart from destroying lives, crops and property, the floods affected electricity generation, causing blackouts in the commercial city of Blantyre. Some roads and bridges were also washed away, cutting off road access to some areas.



FEBRUARY 2019

Market Comments
In general, there is a slight increase in fertilizer prices. There is good rainfall which has led to increased demand and sale of fertilizers. Last month Urea was fast selling but right now CAN is on high demand countrywide.
In the Northern region of Malawi, characterized by low population and mountains, there is no significant change in prices except for CAN which is on high demand now. The sales volume of Urea and CAN is high and low for NPK. The sale of NPK still on decrease and increased for UREA and CAN.
The Central Region, characterized by high population and flat lands, the sales volume of fertilizer is quite high. CAN is fast-selling with an anticipated shortage. In Dwangwa region, sales volume of NPK is very high leading to increased prices.
In the Southern region, Urea and CAN are still sold on high demand. The sales volume of CAN is very high because it mainly used for top dressing maize which has started producing cobs.



JANUARY 2019

Market Comments
The prices of fertilizer are almost the same in all three regions. The two fertilizers, Urea needed for healthy growth and CAN for increased yields, are the fast selling fertilizers in the market. NPK volume of sales has remained low. Fertilizers is being applied mainly on maize which is one of main crops grown in almost every region. In some other areas they use fertilizer for tobacco and rice farming. Rains usually begins in Southern region then to central and finally to Northern.
In the Northern region, Urea and CAN are on high demand resulting in increased sales volume in market while volume of sales for NPK has highly decreased. Apart from maize, farmers in Northern region also grow tobacco in large scale.
In Central Region, the volume of sales for Urea and CAN is very high. This is attributed to the large population of farmers in the region compared to Northern and Southern regions. This explains why the country rely on Central region for food security. NPK volume of sales is also high in some few areas in the region. The high demand of fertilizers in this region is also as a result of smallholder farmers and estates that grow tobacco which use high volumes of fertilizers. The prices are quite stable in some parts of the region.
In Southern region, the volume of sales for Urea and CAN is quite high compared to NPK because most famers in this region mainly grow maize.



DECEMBER 2018

Market Comments
The demand of fertilizers is high because farmers are currently planting. This has led to increased prices of fertilizers.
The government suspended fertilizer coupons few weeks ago because some beneficiary names were missing in the list but now it has resumed, and people are buying FISP fertilizer as usual.

 

 

 

 

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Sep-18 Oct -18 Nov-18 Sep-18 Oct -18 Nov-18
Biantyre com
Dwangwa com 21500 21500 20750 20500 20500 20000
Lilongwe com 22167 22167 22333 20233 20333 21667
Lizulu com 21000 21000 21500 19500 19500 20000
Mchinji com 22750 23000 23250 20350 20750 21250
Mponela com 19800 19800 22500 17800 17800 21000
Mzimba com 27500 25000 25000
Ntcheu com 20300 20300 20300 19800 19800 19800

NOVEMBER 2018

Market Comments
The FISP programme has started distributing fertilizer coupons for 2018/2019 planting season. As a result, there is increased demand of fertilizers by farmers which has led to increased fertilizer prices. Main reason for increased prices being that there are no controls of fertilizer prices in the country and
in the past, few coupons released that do not meet demand gives the agro-dealers a chance to hike prices. Fertilizer coupon cost MK15,000 for a 50kg bag and the farmer tops the remaining amount. The rainy season has started in some parts of the country and farmers are being encouraged to buy fertilizers in bulk. This is because 90-95% of farmers in Malawi grow rain-fed crops. Only a small number of farmers buy fertilizers during the dry season for their irrigated crops.

 

 

 

 

 

 

 

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Sep-18 Oct -18 Nov-18 Sep-18 Oct -18 Nov-18
Biantyre com
Dwangwa com 21500 21500 20750 20500 20500 20000
Lilongwe com 22167 22167 22333 20233 20333 21667
Lizulu com 21000 21000 21500 19500 19500 20000
Mchinji com 22750 23000 23250 20350 20750 21250
Mponela com 19800 19800 22500 17800 17800 21000
Mzimba com 27500 25000 25000
Ntcheu com 20300 20300 20300 19800 19800 19800

OCTOBER 2018

Market Comments
As the rainy season is approaching, one million 2018/2019 FISP coupons have arrived in the country ready for distribution. This year the government did not assign agrodealers to sale sell FISP fertilizer. The consignment will be given to suppliers. Still more fertilizer sales are on decrease since farmers have not yet started preparing for the rainy season activities. Prices remain constant and even decreasing in some shops to clear old stock.

 

 

 

 

 

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Aug -18 Sep-18 Oct -18 Aug -18 Sep -18 Oct -18
Biantyre com
Dwangwa com 21500 21500 21500 20500 20500 20500
Lilongwe com 22167 22167 22167 19400 20233 20333
Lizulu com 21000 21000 21000 19500 19500 19500
Mchinji com 22750 22750 23000 20750 20350 20750
Mponela com 19800 19800 19800 17800 17800 17800
Mzimba com 27500 27500 25000
Ntcheu com 20300 20300 20300 19800 19800 19800

SEPTEMBER 2018

Market Comments
There is more fertilizer in the market, but the demand is very low. NPK fertilizer is the one which is selling most but CAN and Urea. In the coming months it is expected that fertilizer demand will be very high because farmers will be preparing for rainy season. The farmers buy fertilizers early enough because there is anticipated increase in prices once the rains fall.


Sales trend (comparisons from June to July)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

Urea

Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Jul -18 Aug -18 Sep -18 Jul -18 Aug -18 Sep -18
Biantyre com
Dwangwa com 21500 21500 21500 19500 20500 20500
Lilongwe com 22167 22167 22167 19400 19400 20233
Lizulu com 20800 21000 21000 19500 19500 19500
Mchinji com 23250 22750 22750 19000 20750 20350
Mponela com 19700 19800 19800 17800 17800 17800
Mzimba com 27500 27500 27500
Ntcheu com 20300 20300 20300 19800 19800 19800

AUGUST 2018

Market Comments
Overall, fertilizer prices have been stable over this period with slight reduction in prices due to low demand in fertilizers with an exception of NPK which is mostly used by farmers on irrigated crops. This is mainly because during this season, farmers cultivated maize and vegetables on small scale.


Sales trend (comparisons from June to July)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

Urea

Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Jun -18 Jul -18 Aug-18 Jun -18 Jul -18 Aug-18
Biantyre com
Dwangwa com 21500 21500 21500 19500 19500 20500
Lilongwe com 22167 22167 22167 21067 19400 19400
Lizulu com 20800 20800 21000 19500 19500 19500
Mchinji com 23250 23250 22750 19000 19000 20750
Mponela com 19700 19700 19800 17800 17800 17800
Mzimba com 27500 27500 27500
Ntcheu com 21000 20300 20300 21500 19800 19800

JULY 2018

Market Comments
Malawi Kwacha and US dollar exchange rate is still stable that makes fertilizer prices also to be stable. The government oversees fertilizer purchase as most agro dealers have less capital


Sales trend (comparisons from June to July)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

Urea

Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type May -18 Jun -18 Jul -18 May -18 Jun -18 Jul -18
Biantyre com
Dwangwa com 21500 21500 21500 20500 19500 19500
Lilongwe com 21567 22167 22167 21067 21067 19400
Lizulu com 20800 20800 20800 19500 19500 19500
Mchinji com 23250 23250 23250 19500 19000 19000
Mponela com 19700 19700 19700 19500 17800 17800
Mzimba com 24000 27500 27500 27500
Ntcheu com 21000 21000 20300 21500 21500 19800

JUNE 2018

Market Comments 
Fertilizer prices are stable and even reduced because suppliers have more stock and agro dealers have no difficulties when buying fertilizers from suppliers since there is no congestion.
In some areas, farmers are buying fertilizer in bulk because the prices are fair. NPK is selling faster since it’s good for irrigation farming.


Sales trend (comparisons from May to June)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

Urea

 Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Apr -18 May -18 Jun -18 Apr -18 May -18 Jun -18
Biantyre com 20000
Dwangwa com 21500 21500 21500 20500 20500 19500
Lilongwe com 20633 21567 22167 19233 21067 21067
Lizulu com 21500 20800 20800 19500 19500
Mchinji com 22500 23250 23250 18100 19500 19000
Mponela com 19500 19700 19700 19500 19500 17800
Mzimba com 23500 24000 27500 27500
Ntcheu com 21000 21000 21000 20500 21500 21500

MAY 2018

Market Comments 

Farmers have started buying fertilizer for the dry season (irrigated crops) and in this season most farmers use NPK 23:21:0 + 4S. Some agro dealers have reduced their prices slightly to clear old stock while other prices are constant depending on the suppliers.


Sales trend (comparisons from April to May)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

Urea

 Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Mar -18 Apr -18 May -18 Mar -18 Apr -18 May -18
Biantyre com 20000 20000
Dwangwa com 21500 21500 21500 20500 20500 20500
Lilongwe com 19267 20633 21567 19500 19233 21067
Lizulu com 21500 21500 20800 19500
Mchinji com 22500 22500 23250 18100 18100 19500
Mponela com 20500 19500 19700 19500 19500 19500
Mzimba com 20500 23500 24000 27500
Ntcheu com 21500 21000 21000 21000 20500 21500

APRIL 2018

Market Comments 

Fertilizer prices remained constant due to decrease in sales and farmers have started harvesting. Later on the farmers will start preparing for irrigation. Fertilizer sales will increase when farmers start cultivating irrigated crops and the main crops cultivated in the dry season are maize and vegetables.


Sales trend (comparisons from March to April)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Urea

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Feb -18 Mar -18 Apr -18 Feb -18 Mar -18 Apr -18
Biantyre com 20000 20000 20000
Dwangwa com 21500 21500 21500 20500 20500 20500
Lilongwe com 19267 19267 20633 19500 19500 19233
Lizulu com 21500 21500 21500
Mchinji com 22500 22500 22500 18100 18100 18100
Mponela com 20500 20500 19500 19500 19500 19500
Mzimba com 20500 20500 23500
Ntcheu com 21500 21500 21000 21000 21000 20500

MARCH 2018

Market Comments 

There has been a decrease in fertilizer demand as the rainy season is expected to end in April. The demand is expected to increase in May as farmers begin the irrigation period.
Fertilizer Subsidy Programme has now been closed, a total of 12 companies were participated in the 2017/2018 FISP. 50% of the companies in the FISP are expected to make K46 million from recycled coupons. Some of the coupons were back on the market after they were submitted to the Logistics Unit, an entity sponsored by development partners to give checks and balances for the implementation of FISP.


Sales trend (comparisons from February to March)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Jan -18 Feb -18 Mar -18 Jan -18 Feb -18 Mar -18
Biantyre com 20000 20000 20000
Dwangwa com 21500 21500 21500 20500 20500 20500
Lilongwe com 19267 19267 19267 19500 19500 19500
Lizulu com 21500 21500 21500
Mchinji com 22500 22500 22500 19000 18100 18100
Mponela com 20500 20500 20500 19500 19500 19500
Mzimba com 20500 20500 20500
Ntcheu com 21500 21500 21500 21000 21000 21000

FEBRUARY 2018

Market Comments 

Fertilizer demand has decreased because many farmers have finished applying fertilizers. 2017/18 growing season experienced low sales on fertilizers because the economy is affected and many farmers don’t have enough money to buy fertilizer.
This year, Malawi experience low rainfall compared to the previous years and in many places crops have dried up. New government policies in fertilizer industry have really affected agrodealers as no agrodealer is allowed to sell fertilizer subsidy but only suppliers.


Sales trend (comparisons from January to February)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Dec -17 Jan -18 Feb -18 Dec -17 Jan -18 Feb -18
Biantyre com 19000 20000 20000
Dwangwa com 21500 21500 21500 20500 20500 20500
Lilongwe com 19783 19267 19267 19333 19500 19500
Lizulu com 21500 21500 21500
Mchinji com 22500 22500 22500 19000 19000 18100
Mponela com 20500 20500 20500 19500 19500 19500
Mzimba com 20500 20500 20500
Ntcheu com 21500 21500 21500 21000 21000 21000

JANUARY 2018

Market Comments 

Fertilizer sales were high and it was readily available in the market. There is more FISP fertilizer and the farmers who had opportunity to get coupons easily accessed fertilizer. In some depots, FISP fertilizers have been withdrawn because fertilizer coupons were finished.
The majority of the farmer’s did not receive fertilizer coupons since the government couldn’t afford to meet the demand.


Sales trend (comparisons from December to January)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Nov -17 Dec -17 Jan -18 Nov -17 Dec -17 Jan -18
Biantyre com 19000 19000 20000
Dwangwa com 21000 21500 21500 19500 20500 20500
Lilongwe com 19780 19783 19267 19833 19333 19500
Lizulu com 21500 21500 21500
Mchinji com 22750 22500 22500 19000 19000 19000
Mponela com 19500 20500 20500 20500 19500 19500
Mzimba com 20100 20500 20500
Ntcheu com 21500 21500 21500 21000 21000 21000

DECEMBER 2017

Market Comments 

Some suppliers continued to raise their wholesale prices since demand has been very high. Some agro-dealers also raised their prices. The rain has started and every farmer has been busy in the field. Fertilzer is being bought in bulk.

The volume of fertilizer for the whole FISP program is 90,000mt targeting 900,000 farmers and each farmer gets 2 coupons for two 50kgs bags of fertilizer. The volume of fertilizer to be supplied by private sector is 50,000mt and the Public sector is 40,000mt. The public sector comprises of ADMARC supplying 20,000mt and SFFRM also supplying 20,000mt. Maize is the only targeted crop for FISP program.


Sales trend (comparisons from November to December)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Oct -17 Nov -17 Dec -17 Oct -17 Nov -17 Dec -17
Biantyre com 19000 19000 19000
Dwangwa com 20000 21000 21500 19500 20000 20500
Lilongwe com 19450 19780 19783 18833 19833 19333
Lizulu com 21500 21500 21500
Mchinji com 22750 22750 22500 19000 19000 19000
Mponela com 19500 19500 20500 20500 19500
Mzimba com 25000 20100 20500
Ntcheu com 21400 21500 21500 20000 21000 21000

NOVEMBER 2017

Market Comments 

The rains have started in some areas. Fertilizer demand was high since farmers wanted to buy fertilizers before suppliers raise fertilizer prices.

Agro dealers have not been given a chance to sell subsidy fertilizers, but it will be sold by suppliers only.


Sales trend (comparisons from October to November)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 3 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Sep -17 Oct -17 Nov -17 Sep -17 Oct -17 Nov -17
Biantyre com 19000 19000 19000
Dwangwa com 20000 20000 21000 19500 19500 20000
Lilongwe com 19450 19450 19783 18833 18833 19333
Lizulu com 21500 21500 21500
Mchinji com 22250 22750 22750 19500 19000 19000
Mponela com 19500 19500 19500 20500
Mzimba com 25000 25000 20100
Ntcheu com 21400 21400 21500 20000 20000 21000

OCTOBER 2017

Market Comments 

There has been a slight reduction in fertilizer prices because of increase in fertilizer supply in the market as the rainy season is expected to start from late November to early December.

Fertilizer coupons for subsidy program for 8 districts are currently available for distribution. The coupon value for subsidized fertilizer this growing season will be 15,000 Malawi Kwacha.


Sales trend (Comparisons from September to October)

Towns

Fertilizer (commerciel)

Sales trend

Price trend

Ntcheu NP 23 21 0 + 4S

Urea

 Lilongwe NP 23 21 0 + 4S

Urea

Mponela NP 23 21 0 + 4S

 Dwangwa NP 23 21 0 + 4S

Mchinji NP 23 21 0 + 4S

Urea

 

Price trends over the past 2 months

NP 23 21 0 + 4S Urea 46%
MWK/ 50 kg bag Type Sep -17 Oct -17 Sep -17 Oct -17
Biantyre com 19000 19000
Dwangwa com 20000 20000 19500 19500
Lilongwe com 19450 19450  18833 18833
Lizulu com 21500 21500
Mchinji com 22250 22750 19500 19000
Mponela com 19500 19500
Mzimba com 25000 25000
Ntcheu com 21400 21400 20000 20000
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