Market News

Flour prices fall on reduced cost of maize grain

hamadi-boga

Agriculture PS Hamadi Boga before a House committee in the past. PHOTO | JEFF ANGOTE | NMG

The price of maize flour has dropped in response to the falling cost of maize grain after the government cleared Tanzanian imports in May.

A two-kilo packet of the staple is now selling at an average of Sh106 across various retail chains with millers attributing the decline to cheaper maize.

Capwell Industries chief executive officer Rajan Shah said they are now purchasing a 90 kilo bag of the produce at Sh2,700 from a high of Sh2,800 last month.

“Prices have gone down slightly from what we were buying at last month. In some instances, traders were asking for up to Sh3,000 for a bag in May,” said Mr Shah.

He however pointed out that the millers are still not getting enough supply from farmers.

The price of maize is not projected to rise further given that Kenya will from next month start getting the short rain crop from South Rift, which will coincide with the stocks coming in from Uganda.

The Principal Secretary in the Ministry of Agriculture Hamadi Boga told the Business Daily the country is expecting a good crop from the short rains as from next month.

Following the State visit to Kenya by Tanzania President Samia Suluhu Hassan last month, Kenya and Tanzania resolved to clear the outstanding trade barriers that had seen maize from Dar es Salaam stopped from entering Nairobi following concerns over high levels of aflatoxin.

President Uhuru Kenya directed the Ministry of Agriculture to allow into the country stocks that had been held up at the Namanga border.

“Tanzanian maize has seen the cost settle at the current price and it has played a role in checking the high cost,” Mr Shah said.

The expected stability of grain in the market will come as a relief to consumers who have been grappling with high cost of basic goods.