High cost of transporting grain from
North Rift depots to the rest of the country has discouraged some
millers from buying cheap maize released by the government from the
Strategic Food Reserve (SFR).
National Cereals and
Produce Board (NCPB) Managing Director Newton Terer said millers have
purchased just over a half of the available one million bags.
He said millers have bought only 600,000 out of the available one million bags of cheap maize in their stores.
The
maize from the food reserve was released through the NCPB about a month
ago to curb the runaway cost of flour that has sparked outcry from
consumers.
A bag is being sold at Sh3,000 to millers in a bid to address the shortage of the commodity and help reduce the rising cost.
The
government released the SFR maize almost a month ago as a short-term
intervention to help lower the cost of food and ease pressure on
inflation.
It also abolished taxes on maize, wheat and bread, essential commodities that form part of Kenya's staple food.
Bought in bulk
"The
large-scale millers have bought the produce in bulk at our Eldoret and
Moi’s Bridge depots while their small scale counterparts purchase the
crop in bags from the rest of the depots,” said Mr Terer on phone
Wednesday.
Most millers have complained of high costs
to transport the commodity from NCPB depots in the North Rift to milling
plants in other parts of the country.
“The high
transport cost is making it difficult for some millers to relocate the
produce especially from western Kenya region to milling plants in
Nairobi and beyond. This adds to the increased cost of flour,” said Mr
Simon Kimeli, a private miller in Eldoret.
Maize prices
have increased from Sh3,200 to Sh3,800 per bag in Eldoret while it is
selling at Sh5,200 in Kisumu as millers complain of acute shortage of
the produce.
Almost a month after the Treasury removed
duty on imported maize in the next four months and the NCPB released
cheap grains to maize millers, the cost of flour has continued to
skyrocket
The price of two-kilogramme packet of maize
flour is going at Sh150 up from Sh110 in most retail shops in the North
Rift region.
“We expected the cost of flour to drop
after the government released cheaper maize to the market but instead
prices have skyrocketed piling pressure on most households,” said Ms
Gladys Sang, a mother of four in Eldoret.
Reduced acreage
Some
farmers in the region are contemplating reducing acreage under crop
production due to high cost of farm input as agriculturalists warn of
food shortages due to unreliable rainfall during planting period.
“What
farmers require is sufficient capital to enable them to invest in
modern crop techniques to increase productivity and attain food
security,” said Mr Musa Barno, Kenya National Federation of Agricultural
Producers (Kenfap) Uasin Gishu branch chapter.
The
farmers have petitioned the government to introduce reforms in the
agricultural sector to make it vibrant and motivate them to increase
crop production and attain food security.
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