Commodities

Blow for farmers as maize price declines by Sh400

maize

Workers weigh and sort maize grains by the roadside in Elburgon town, Nakuru County. FILE PHOTO | NMG

Maize farmers have suffered a blow after prices dropped by Sh400 to Sh2,800 for a 90-kilo bag even as they battle rising costs of inputs.

This follows the scaling down of the purchase of the grains by millers to cut down on costs due to declining demand for processed flour.

The arrival of cheap produce from East Africa Community (EAC) member States-Uganda and Tanzania has also contributed to the decline in maize prices to the relief of consumers who will pay less for the stable product.

“What we are witnessing is that most millers, large and small, have cut purchases due to a decline in demand for flour caused by low purchasing power among consumers,” said Grain Belt Millers Association chairman Kipng’etich Mutai.

Millers have warned of further decline in maize prices following the harvest of short-term crops and the arrival of cheap produce to EAC member States.

“Some of the consumers have opted for posho mill flour, which has impacted negatively on our operations, pushing some millers out of the market,” said Mr Mutai.

Maize flour prices have in the past two months increased from Sh80 to Sh110 per two-kilo packet but the prices are expected to reduce following the arrival of cheap produce.

Maize from EAC countries is selling at Sh2,800 which is low as compared to Sh3,200 per a 90-kilogram bag in the local market.

According to Agriculture principal secretary Hamadi Boga, most of the maize is imported from Tanzania and Uganda after production of the stable declined by 4.3 percent from 44 million bags in 2019 to 42.1 million bags last season.

“We are tracking production and consumption of this critical commodity and available stocks. Currently, imports are flowing from the region, Tanzania and Uganda,” said Prof Boga.

Consumers Federation of Kenya (Cofek) has blamed the skyrocketing maize flour prices to hoarding of maize by millers who purchased the grain at low cost during the harvest period.

“It is the cereal millers who are causing artificial shortage by hoarding their stocks. They must be investigated for wanting to resale their cheap stocks expensively,” said Stephen Mutoro, Cofek secretary-general.

The decline in maize price is a pain to grain farmers who have been hit by rising production costs that are hurting the agriculture sector dashing gains made to attain food security.

The fertiliser prices have increased with 50-kilo bag going at Sh6,000 up from Sh3,200 while a 25-kilo bag of maize seed is selling at Sh4,500 despite government reforms in the sector that forms an economic lifeline to most households.

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