Maize prices hit three-month high as seed shortage persists

Maize prices have shot to a three-month-high as dealers beef up their reserves amid a biting shortage of planting seeds that could cut this season’s harvest.

The price increase is threatening to worsen Kenya’s inflation rate that is expected to enter the double-digit mark before June.

Market data showed that maize prices in Nairobi had as at last week hit Sh27,390 per tonne—the highest mark since in January.

Kisumu recorded the highest maize prices in the country at Sh30,710 per tonne with sector analysts warning of a possible replay of the record high costs in the 2008/09 season when the country witnessed a food crisis.

“Maize meals feature on almost every table in a Kenyan household and any variations in price are felt right there,” James Migwa, an independent commodity analyst said.

Data by the Kenya National Bureau of Statistics showed inflation climbed to 9.19 per cent in March from 6.64 per cent in February.

Food prices, which rose by 15.1 per cent from a year earlier, provided the greatest impetus to inflationary pressure besides the cost of transport which climbed by a margin of 15.89 per cent on the back of the steep rise in the price crude oil.

Kenya Seed Company is pushing for production of maize seeds through irrigation can avert future shortages.

The managing director Willy Bett said production of maize seeds dropped by about 25 per cent last year mainly due to drought.

The rainfall shortage saw the company—which supplies 80 per cent of the national demand- produce an estimated 18 million kilogrammes of seeds, down from 25 million kilogrammes in 2009.

“The company has introduced irrigated seed production instead of relying on rains alone as it has proved to be unreliable,” said Mr Bett.

Farmers in the North Rift and other grain basket regions of the country have complained of certified maize seed shortages following onset of the long rains.

Mr Bett said the seed company has increased the number of farmers contracted to grow maize seeds at the Bura and Hola irrigation schemes, where total land stands at 9,000 acres.

Other farmers under contract are in Baringo, Taita Taveta, Ahero, Trans Nzoia and Wei Wei.

Meltdown