National Cereals and Produce Board (NCPB) managing director Newton Terer during a two-day Africa Strategic Grain Reserve Conference at the Intercontinental Hotel on June 14, 2016. FILE PHOTO | NMG
Some millers complain of high costs of transporting the SFR maize from depots in North Rift to the rest of the country
NCPB Managing Director Newton Terer says millers have purchased just over a half of the available one million bags
The maize was released about a month ago to curb the runaway cost of flour that has sparked outcry from consumers
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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