Why government intervention in Malawi's corn market often leads to unintended hunger

Malawi relies heavily on corn for both its economy and daily caloric intake. This video examines how government attempts to manage price volatility through trade restrictions and price controls have backfired, ultimately exacerbating supply crises and fueling the growth of black markets.

Corn is central to life in Malawi, occupying 60% of the nation's agricultural land and providing 70% of the calories consumed by its population. Despite its importance, the market is highly volatile. While increased trade could theoretically stabilize prices, only 15% of the country's corn is currently traded.

When prices spike, the government has historically responded with price controls, export bans, and import bans. These interventions discourage farmers from bringing their produce to market and disrupt supply chains, which has led to the emergence of black markets and, tragically, increased hunger.

Source: Malawi restricts trade in corn