The Namibian Agronomic Board (NAB) has set the floor price for white maize at N$5 657,21 per tonne delivered to millers between 24 July and 6 August.
According to a statement issued by NAB chief executive officer Fidelis Mwazi last week, in terms of the 2023 white maize agreement under section 2,2, should the calculated South African Futures Exchange (Safex) spot price weighted average for the previous fortnight period be higher than the staggered floor price, then the Safex fortnight weighted average price formula will be implemented.
“The final Safex fortnight weighted average price for the period 7-20 July of N$5 585,41 per tonne is lower than the staggered floor price of N$5 657,21 per tonne for the period 24 July to 6 August, by N$213,82 per tonne.
According to the NAB, the rationale behind the potential floor price increase every two weeks is to cushion farmers and compensate them for storage costs. This, however, does not result in an increase in food prices as the formula for implementing the increases is agreed to at the beginning of the year.
Mwazi said the NAB will continue monitoring the Safex fortnight weighted average price for maize for the next two weeks and notify the industry accordingly should the price be lower than the Safex weighted average floor price for the same period.
Mwazi said both the processor and producer levy of 1,4% should be calculated based on the subtotal of the staggered floor price of N$5 462,80, which excludes the import levy differential, and, hence, the producer levy to be deducted from the producer’s price by all processors is N$76,48 per tonne.
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