Business Daily
Date: 20.11.2014
Page 5
Article size: 242 cm2
ColumnCM: 53.77
AVE: 102177.77
Maize losses hit farmers as
State defers setting prices
E AGRICULTURE Brokers rush to buy grain at Shl,300 in North Rift
BY EDWIN MUTAI
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 20.11.2014
Page 5
Article size: 242 cm2
ColumnCM: 53.77
AVE: 102177.77
Make farmers have been left at the
governors from TYans­Nzoia, Uasin The uncertainty in the maize market
mercy of middlemen after the govern­ Gishu, Bungoma, West Pokot Nan­ eames as the NCPB is faced logisti­
ment said it will delay setting prices di and Elgeyo Marakwet will start in cal nightmares in its plan to move
and buying grains on fears that it will preparation for strategies that will about 1.5 million bags of maize from
help isolate brokers and middlemen the North Rift depots to create room
benefit brokers.
for purchase of new grains from the
Agriculture secretary Felix Ko­ from genuine farmers.
"The situation seems to be that it current harvesting season.
skei told parliament yesterday that
National Cereals and Produce Board is the same traders who want to ben­
The board requires up to Sh200
million to move the old stock from El­
efit from government intervention
(NCPB) will start buying maize after
a vetting exercise to identity genuine by buying maize at prices as low as doret Moi's Bridge and Kitale depots
farmers, even as prices in the grain Shl.500 and sell it to NCPB at govern­ to deficit areas like Lugari, Kapsok­
basket of the North Rift continued ment­determined prices," he said.
wony, Kedowa and Kipkelion silos.
Mr Koskei said the transfer has
to slide.
Official data say it costs Shl,500 to
The NCPB was allocated Sh2.7 produce abag of maize in Tirans Nzoia started.
"The target is to transfer approxi­
billion to buy maize this year and its and Shl,3O0 in Uasin Gishu.
Mr Murungi asked the govern­ mately one million bags and create
presence in the market helps to regu­
late the prices of the grain that is no w ment to announce the minimum room for an equivalent purchase,"
prices to cushion farmers from ex­ he said.
being influence by brokers.
Last year, the government released
"Traders who are not necessarily ploitation by middlemen.
"A small­scale peasant farmer has
Sh3 billion in September and by the
farmers are stocking maize. We sus­
pect maize that is coming from neigh­ no future. The government should third week of October NCPB had al­
bouring countries and that purchased carry them on its backs. They must ready started buying.
The falling maize prices have come
from farmers at throwaway prices is be protected. Announce niinimum
being stocked in readiness for deliv­ prices to help stabilise the falling as a reprieve to households that have
been enj oying a Shi 2 drop in the cost
ery to NCPB," Mr Koskei told the Sen­
prices* Mr Kiraitu said.
of flour.
ate Agriculture committee chaired hy
Western Kenya is experienc­
[email protected].
Mem Senator Ki raitu Murungi.
ing heavy rains that have hindered
Harvesting in the North Rift­
drying of grains, forcing growers to
Kenya's food basket—started last
hurriedly sell their crop to avoid post­
month and traders reckon that maize
harvest losses.Theurgencyto sell has
prices that h ave dropped to Shl,300 opened the room for traders to offer
for90 kilogramme bag from Sh3,200 low prices, arguing that they incur
in May, and could fall further barring additional costs in handling the grain
the entry of NCPB into the market
with high moisture content.
But while the lower prices are
a boon to consumers in the form
of cheap flour prices, farmers are
unlikely to recover their produc­
tion costs.
Mr Koskei said consultations with
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya