CS Kagwe doubles prices of export grade miraa after farmers’ boycott
The Ministry of Agriculture has doubled the price of miraa for the three export varieties after a week-long export boycott by farmers.
Agriculture Cabinet Secretary Mutahi Kagwe said in a statement that the new prices are meant to reflect the current market trends.
Farmers will now sell a kilogram of Grade 1 miraa at Sh1,300 up from Sh700 while Grade 2 will sell at Sh700, up from Sh350.
A kilogram of the Allele variety has been capped at Sh1,000 up from Sh500.
“These prices take effect immediately. The government will continue to address the market access challenges to expand on export opportunities in our current and new markets,” Mr Kagwe said in the statement.
The directive comes after several days of stakeholders’ engagement spearheaded by the Agriculture and Food Authority and the Miraa Pricing Formula Committee.
The Committee is mandated to advise the industry pricing of Kenyan miraa.
“In executing its duties, the committee reviews production data, cost, supply and demand among other parameters to advise the sub-sector,” Mr Kagwe said in a statement.
Miraa Farmers and Pluckers’ Welfare Association last week called for a trade boycott demanding up to Sh1,500 per kilo for the farmer.
The association chairman Japhet Mutuma said they want exporters to pay up to Sh200,000 per bag of Grade (export variety) and Sh160,000 for Allele (miraa variety destined for North Eastern Kenya).
“From our research, we have gathered that a kilo of Kenyan khat retails at up to Sh5,700 in Mogadishu yet the farmer gets Sh300. We are only demanding that the exporters cede Sh1,000 more to the farmer. It is mind-blowing that the cost of transporting a kilo of miraa to Mogadishu is more than Sh3,000,” Mr Mutuma said.
He added: “Farmers and local traders who receive orders from exporters are in agreement to boycott the trade until they come on the table. We are ready to bear the pain of the boycott until our demands are met.”
He said measures have been put in place to ensure no farmer or trader defies the boycott by sneaking miraa into the market.
“Any farmer, trader or transporter who defies the boycott will face dire consequences. We will be confiscating any vehicle found to go against the agreement,” he said.
Nyambene Miraa Trade Association (Nyamita) chairman Kimathi Munjuri welcomed the directive by the CS saying farmers have been exploited for long.
“The Somali market is currently being driven by artificial forces rather than market forces,” Mr Munjuri said.
He added, “This is why we support Kenya to also control the supply prices at the farm. Traders should not confuse the farmer. They should also sell per kilo. We urge the farmers not to be duped.”
He said miraa farmers have been incurring heavy costs from irrigation water and tree husbandry.
Mr Munjuri urged CS Kagwe to make true his pledge to eradicate the illegal collection of $4.5 per kilo of miraa at the JKIA.
He said the cartel was also dictating the miraa farmgate price.
“We were clear to the CS that the collection of the illegal commission must be terminated. We are glad that the CS promised to deal with this decisively. This is the biggest problem to the miraa industry,” he said.
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