Market News

Maize price rises as State delays release of grains

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Customers shop at a Naivas Supermarkets outlet on in Nairobi. FILE PHOTO | NMG

Maize prices have started rising following delays in releasing grains from the Strategic Food Reserve (SFR) to boost supplies in the market.

A 90-kilogramme bag is selling at Sh3,300. It had dropped to Sh3,000 in the past three weeks after the government announced it would release cheap maize from the SFR to millers.

“The price of maize has gone back to Sh3,300 after delays in releasing stocks from SFR as the supply of grain has dwindled in the market,” says United Millers Association chairperson Peter Kuguru.

The Ministry of Agriculture announced a month ago that it would release three million bags of maize to millers to help ease the price of flour that now stands at Sh120 for a two-kilo packet, up from Sh85 at the beginning of the year.

The move saw farmers and traders who had been hoarding the grain release it to the market, increasing supply to drive down the price.

Supremacy wars between the Ministry of Agriculture and the officials of the SFR oversight board led to the delay in releasing of the reserve maize. The two have been at loggerheads over who is in charge of the grain, throwing the initial plans into disarray.

The SFR oversight board held a meeting with the millers last week to set modalities for releasing the grain after the Agriculture ministry agreed to transfer the function to the agency.

Board chairman Noah Wekesa said they met with Agriculture PS Hamadi Boga last week and agreed that the board would oversee the distribution of grain to millers.

"There are no differences now. We met with the PS and agreed on the way forward," said Dr Wekesa in a phone interview.

A communication sent to the millers shows that the ministry had bowed to pressure and transferred the process it had already started to SFR.

“Kindly be informed that the function of allocating and issuing of SFR maize to millers has been moved from the Ministry of Agriculture to Strategic Food Reserve Trust fund Secretariat,

“I have therefore forwarded your allocation lists to SFR Fund manager for consideration and necessary action,” reads the communication to the millers.