Friday, June 19, 2015

Row over licensing of coffee marketers hits a brick wall

A farmer sorting coffee for milling. A total system audit of all Coffee Co-operative Societies and Murang’a Farmers Co-operative Union is underway to determine what is ailing the coffee sub-sector in Murang’a County. PHOTO/FILE


A farmer sorting coffee for milling. The dispute over licensing of coffee marketers between the agriculture authority and the counties has hit a stalemate. PHOTO/FILE  NATION
By MWANIKI WAHOME
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The dispute over licensing of coffee marketers between the agriculture authority and the counties has hit a stalemate.
The two have have held five meetings and cannot agree on who takes up the role.
With just days before the dealers obtain new permits from July 1, the Agriculture Fisheries and Food Authority now wants Parliament to help out.
“The matter was referred to the counties and we have not agreed on the functions except processing and international trade,” authority acting director-general Alfred Busolo told the parliamentary committee on agriculture last week.
Two weeks ago, Nyeri County trade executive Stanley Miano said discussions over the stalemate on licensing are ongoing.
Last month, the Council of Governors, through the Agriculture and Lands Committee Chairman Nderitu Gachagua, said it would go to court to block authority’s attempt to collect licence fees. The authority called on dealers, marketers and warehouses to renew their permits.
The parliamentary committee chairman, Mr Kareke Mbiuki, said it has been noted that counties were unwilling to be subjected to regulations by national bodies.
“There is a conflict. We ask the food and agriculture authority to consult with the parliamentary committee on agriculture. We have counties that are saying agriculture is a devolved function and they do not want to be regulated from Nairobi,” he said.
DEVOLVED FUNCTION
He noted that the interference in coffee marketing in Nyeri was an example of why rules were necessary to prevent disruption in farming.
The counties and the regulator are engaged in a supremacy war over authorising dealers in coffee with an eye on the licensing fee.
The Council of Governors argues that agriculture is a devolved function and view it as a revenue stream.
However, the agriculture authority is concerned that lack of regulation across the country could jeopardise international trade. Two weeks ago, MPs meeting in Mombasa said they would review the law creating the agriculture fisheries and food authority to harmonise it with devolution.
Clarify matters
Among those caught up in the dispute are Kenya Planters’ Co-operative Union, which has indicated its intention to re-enter the coffee marketing business after coming out of receivership last year.
“We do not know whether to go to Nairobi County offices or the the authority. They should clarify these matters so that we are able to plan for business,” an official familiar with the matter but not authorised to speak to the press said on behalf of the union.
Organisations and firms seeking licences say that agriculture is a devolved function and the national government’s role is policy formulation only.
The coffee industry wants the rules governing the business changed to reflect the market situation

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