State bans imports of wheat, purchases maize worth Sh336m
It is a relief to wheat farmers after the government banned the importation of the commodity to protect the local market from cheap imports that will destabilise prices.
Agriculture Principal Secretary Dr Paul Kipronoh Ronoh said the decision will only be rescinded after the millers mop up the local produce at attractive rates and make prompt payments to farmers.
“No miller dealing in wheat will be allowed to import the produce until all the wheat locally produced is mopped up and utilised by the millers,” said the PS in Eldoret.
He said the government wants to motivate farmers to increase crop production and cushion them against exploitation by traders.
He disclosed that the country produces 2.2 million metric tonnes of wheat annually accounting for only 5 per cent forcing the country to import the deficit.
“What we know is that most wheat farmers have not been paid for the produce purchased but we have had meeting with millers on how to mop up the produce and pay farmer their dues,” said Dr Ronoh.
The country’s wheat production has dropped with Rift Valley realising 4.5 million bags of wheat from 127,825 hectares of land last season against annual potential of 6.2 million bags.
Acreage under wheat production in Uasin Gishu County dropped from 40,000 hectares to 18,000 hectares last season due to what farmers have attributed to challenge of rust, climate change and market volatility.
The government has raised minimum prices that millers pay for top grade wheat by Sh100 – from Sh5,300 up from Sh5,200 last season.
In the review schedule by the Agriculture and Food Authority (AFA), millers are required to purchase a 90kg of grade 1 wheat at Sh5,300 and grade 2 at Sh5,200 up from Sh5,100. They can negotiate the price of Grade 3 wheat.
“The pricing shall apply as at traditional buying centres of Narok, Nakuru, Eldoret, Nyahururu and Timau,” said AFA.
Motivate farmers
Most millers are buying wheat at Sh4,800 per 90kg bag during harvest period which farmers claim is too low compared to increased production cost.
Bakers have in the past few months reviewed bread prices by 16 per cent with a 400 grammes loaf of bread going at Sh80 up from Sh70 and 800 grammes at Sh130 up from Sh120 in what the processors have attributed to decline in supply of wheat flour among other factors.
According to the PS, the government has put in place measures to motivate farmers to increase crop productivity in order for the country to attain food security.
He disclosed that the government has imported one million bags of subsidised fertilizers to be distributed to farmers in Bomet, Narok, Bungoma, Nyamira and Kisii counties for the short rain planting season.
Dr Ronoh said the giant seed producer, Kenya Seed Company, has 28 million kilograms of maize seed for planting in January against demand of 70 million kilograms for the short and long rains planting season.
“The Kenya Seed Company will produce additional eight million kilograms of maize seed while the private sector will produce another 34 million kilograms to meet the demand in the market,” said the PS.
He said the government through the National Cereals and Produce Board (NCPB) has purchased maize worth Sh336 million this season from farmers.
“The farmers who have delivered the crop to NCPB have already received their money and are ready to invest in the next crop,” said Dr Ronoh noting that the government will make prompt payment for maize deliveries to the board.
The government through the NCPB is to purchase one million bags of maize at Sh3,500 per 90-Kg bags for the National Strategic Food Reserve.
The PS cautioned farmers against selling their produce to middlemen at throw away prices noting that the government was determined to mob the produce at competitive prices.
While the NCPB targets to purchase up to 1 million bags at Sh3,500 per a 90 Kg, amounting to Sh3.5 billion for the National Strategic Food Reserve, millers and other traders have raised the prices from Sh2,600 to Sh3,850 in a cut throat competition with the government agency to bolster their stocks.
According to the outgoing Agriculture and Livestock Development Cabinet Secretary Dr. Andrew Karanja has defended the Sh3,500 per bag is intended to support farmers to maintain profit margins and invest in the next crop.
“We project a bumper harvest as compared to last season when we managed between 40 and 60 million bags but about 75million bags of 50 kg will be realized this season,” said the former CS early this month while defending the set maize prices arguing that it will help maintain Unga prices at the current Sh130 per 2 Kg packet.
But maize farmers in the North Rift region have casted doubt on the projected plentiful yield noting that infiltration of fake fertilizer in the government subsidized scheme coupled with erratic climatic condition resulted in declined harvest.
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