The Strategic Food Reserve (SFR) officials say there is no need to set the price for buying maize this year given the premium prevailing in the market.
SFR board chairman Noah Wekesa said the current market price is what the government would have offered farmers. This will resonate with policy analysts who have faulted setting of buying price for the produce.
Dr Wekesa said the price of a 90-kilogramme bag of maize in the North Rift is going at between Sh2,900 and Sh3,000, which is one of the highest prices recorded during harvest time.
“There is no need to set price at the moment as farmers are getting high prices in the market,” said Dr Wekesa in an interview yesterday.
This implies farmers will have to depend on millers and traders, denying SFR the buffer stocks.
Last week, Dr Wekesa said SFR was looking into some issues before coming up with the official price.
“It is true we met but we need to clear some issues before we make the decision on both the price and the date,” he had said in an interview.
The board was set to buy four million bags of maize from this year’s crop to replenish stocks at the SFR following depletion of the previous consignment after the government ordered release of grain to millers to combat high cost of flour.
The price of flour had shot to hit a high of Sh135 following a shortage of maize in the country amid high demand for flour.
Chief Administrative Secretary in the Ministry of Agriculture Andrew Tuimur said the good prices could hamper the purchase by the National Cereals and Produce Board.
“Farmers are at the moment enjoying good price at the market and most likely the trend could hold for long,” said Dr Tuimur.
The harvesting of the main crop has started in Uasin Gishu and Trans-Nzoia counties, which are considered the country’s breadbasket.
SFR is at any given time required to have at least three million bags of maize or its equivalent in cash.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
