Professor Mutharika was speaking when he visited the Farm produce structured market AHL Commodities Exchange-AHCX in Lilongwe, which facilitates domestic and international trade, mainly grains and legumes under the concept of warehouse receipt.
The Malawi leader said farmers in the country are being exploited due to what he said is an existing informal export market.
“Informal buyers come into the country and export commodities but the money never comes to Malawi. Money is disappearing through this kind of thing. But we are going to stop that because we want to protect our farmers who have been cheated for many years now,” said President Mutharika.
“We want to get good prices for our farmers because this country will only develop if there is more money in the pockets of our farmers. That is what we are trying to do by opening up markets and negotiating for better prices for the farmers.
“Also, we will soon be introducing the Control of Goods Act for the exporting growers which will also help us in exports,” added Mutharika.
The Malawi leader during his visit was briefed on recent crucial developments that have happened after the inception of the market in 2013.
In his remarks, General Manager for AHCX, Davis Manyenje Malawi continues to export a lot of products informally and because of that; there is export under-declaration hence profits are not coming through.
“But under structured markets, we come in with efficiency, transparency and fairness in the pricing mechanisms that are discovered on the market. This means there are also mechanisms to ensure that all exports and profits are duly accounted for,” said Manyenje.
The General Manager however said there are significant interventions that have been done like the recent passing of the warehouse receipt bill and the commodity exchange directive which is being championed by the Central Bank under the Financial Services Act.