Irregular maize supply requires urgent audit

ncpb-naxf

The National Cereals and Produce Board, Nakuru depot. FILE PHOTO | NMG

What you need to know:

  • The blame-game over the inconsistency in maize supply raises deep concern that some crooks may be playing some dirty games.
  • For months now Kenyans have been treated to a war of words between millers and maize farmers on the cause of maize shortages in the market.
  • Millers on the one hand have accused farmers of hoarding the crop while the growers have shot back, saying they would not be exploited with low prices.

The blame-game over the inconsistency in maize supply raises deep concern that some crooks may be playing some dirty games.

For months now Kenyans have been treated to a war of words between millers and maize farmers on the cause of maize shortages in the market.

Millers on the one hand have accused farmers of hoarding the crop while the growers have shot back, saying they would not be exploited with low prices.

From the surface, this may look like the typical market forces of demand and supply at play.

However, the persistent clamour for maize imports by some traders amid this standoff reeks of a hidden agenda.

IMPERFECT MARKETS

Why would one find it more befitting to ship in maize from other markets than engage farmers here for supplies at favourable rates?

This is a common trend in imperfect markets where cartels call the shots.

Cartels in the Kenyan grain sector are vicious and have even crippled the operations of the national strategic food reserve (SFR) managed by the National Cereals and Produce Board.

For close to two years, the cartels had tricked farmers not to sell their produce to NCPB under the guise of clamouring for better prices.

Surprisingly, the NCPB had offered the growers Sh2,500 per 90-kilogramme bag of maize — way higher than the Sh2,000 to Sh2,200 offered by private millers.

Clearly, there is evidence that there is more to the maize supply saga than meets the eye.

It is not lost on market watchers that the craze for maize imports has been with us for some time with some crooks even infiltrating the NCPB purchase scheme to illegally profiteer using stocks imported from elsewhere as witnessed three years ago.

In 2018, thousands of farmers were left stranded with their produce even as the NCPB silos spilled with stocks shipped in from neighbouring countries by brokers who were cashing in on the loophole.

We must not allow this to happen again and the Agriculture ministry should conduct an urgent audit on the true position of the maize market or we risk playing into the hands of the middlemen.

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