Maize farmers to wait longer for payment

Maize farmers will have to wait longer for their dues after the Treasury allocated only Sh1.9 billion in the supplementary budget for payment for grain delivered to National Cereals and Produce Board (NCPB) depots.

The amount, which is far below what growers are demanding, will be spent on paying farmers and procurement of subsidised fertiliser. This means that farmers will only get a fraction of the allocation.

According to the Ministry of Agriculture, the government owes farmers Sh4.15 billion accruing from maize delivered to NCPB between last October and March.

As of last month, it had paid farmers Sh7.1 billion after purchasing 3.3 million bags of maize from last season’s crop.

READ: Only one month maize cover left as State yet to pay millers Sh4bn

The NCPB announced it will sell 650,000 bags of maize to millers at a cost of Sh2,300 per 90-kilogramme bag.

Agriculture secretary Mwangi Kiunjuri told Parliament this month that the proceeds from the sale would be used to clear part of the farmers’ debt.

The ministry had sought Sh3.6 billion under the supplementary budget to clear the farmers’ dues.

The board has stopped buying maize from farmers, citing lack of storage space.