Market News

Consumers to pay more as maize hits Sh4,200 per bag

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Millers say sellers have refused to release stocks even after a price increase while the government dilly-dallies on imports. FILE PHOTO | NMG

The wholesale price of maize has hit a record Sh4,200 per 90 kilogramme bag even as millers complain that farmers and traders are still demanding higher prices for their produce.

Millers say sellers have refused to release stocks even after increasing the price from Sh4,000 last week to Sh4,200 on Tuesday.

This is the highest price millers have ever paid for a 90kg bag in the last 10 years in a situation likely to add more pain to the consumers and drive up inflation figures.

“Even with the high price that we are offering millers are unable to get stocks from farmers and traders and we have totally run out of maize,” said Cereal Millers Association vice-chairman Mohamed Islam.

Millers expect the situation to get worse as the government still dilly-dallies over the importation of maize which was expected to ease the shortage.

Millers require 50,000 bags of maize every day for them to operate optimally but most of them are operating below installed capacity.

The government has been considering importing white maize from Mexico but it has so far delayed the move saying that farmers are hoarding maize.

“We had plans of importing maize but we have delayed to monitor the situation given that there is enough maize in the country only that traders and farmers are still holding huge stocks basing on the recent food situation report that we have,” said Agriculture Cabinet Secretary Bett.

The stocks held by farmers, according to the report, stood at 10 million bags, traders 2.7 million bags, millers 993,637 and NCPB 1.4 million as at the end of January. The food balance sheet report indicates that Kenya had 15 million bags of maize as at January 31.