Maize export ban in Malawi benefits urban non-poor, harms rural households.
Restrictions on exporting food or crops in Malawi may seem like a good idea to help with food security and industrial growth, but they can actually end up hurting the economy in the long run. A study looked at how banning maize exports and taxing oilseeds for processing affected different groups. The results showed that these restrictions mainly benefit city dwellers and industrial businesses, while causing income losses and reduced food for rural farmers. The policies end up backfiring by reducing overall agricultural production and value addition, leading to welfare losses for rural households. So, while export restrictions may seem helpful at first, they can actually harm the economy and the people they were meant to help.