The volume of maize sold to the National Cereals and Produce Board (NCPB) has risen sharply to 48,600 bags, just a week after it raised its purchase price by Sh200 per 90-kg bag.
For three weeks, NCBP had only attracted 2,000 bags from farmers disillusioned by its previous price offer of Sh2,500 a bag.
This forced the management of the state agency to review the price upwards to Sh2,700 to woo sellers who were already enjoying good price from traders and millers.
The volume of maize sold to the National Cereals and Produce Board (NCPB) has risen sharply to 48,600 bags, just a week after it raised its purchase price by Sh200 per 90-kg bag.
For three weeks, NCBP had only attracted 2,000 bags from farmers disillusioned by its previous price offer of Sh2,500 a bag.
This forced the management of the state agency to review the price upwards to Sh2,700 to woo sellers who were already enjoying good price from traders and millers.
“The Board has bought 48,600 bags of maize. The response from farmers is good and we are receiving their grain. We urge all farmers to take advantage of our good price of Sh2,700 per 90kg bag, and our prompt payment which is done within 24 hours of grain delivery,” said NCPB.
Millers are paying Sh2,700 for a 90-kilo bag of maize, a move that made it difficult for NCPB to attract stocks from farmers.
The price of maize is projected to rise further in the coming months as millers expect a tight supply of grain in the market.
The board opened its doors last year in December for supplies, after failing to purchase maize in 2019 from growers.
However, unlike other years, the grain handler is buying maize for its commercial use and not for Strategic Grain Reserve as it has been the case before.
The board is buying maize under its commercial wing for trading alongside other grains such as rice and beans.
The State has before been buying maize through NCPB for the SFR stocks, which at least needs to have a minimum of three million bags for emergence use in times of famine.
The maize is normally released to millers at lower cost in order to check the rising cost of maize flour to protect consumers.
The Ministry of Agriculture released the entire stocks that was in SFR last year to millers after the price of flour rose to a historic high of Sh130 for a two kilo packet.
Millers have already warned of a tight supply of maize in the market come next month, arguing that the move will see the cost of flour go up.
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