Millers cut flour price as delays at the port reduce

A customer picks a packet of unga at a supermarket in Nyeri. FILE PHOTO | NMG

What you need to know:

  • Millers last month suffered a serious shortage of wheat after a congestion at the port of Mombasa delayed the discharge of 300,000 tonnes of the grain.
  • The move created a shortage in factories with some millers missing out on orders from clients, pushing the consumer prices up.
  • The delays forced millers to pay $15,000 demurrage daily for a single ship.

Millers have cut the price of wheat flour by Sh8 after the supply through the port of Mombasa improved following delays witnessed in the last couple of months.

According to millers, the recommended price for a two-kilogramme packet is Sh129, down from Sh137 it was retailing at last month.

However, the changes are yet to be effected with the supermarkets and shops in city estates still selling to consumers at old prices.

“We have cut our prices by Sh8 and the recommended price for a two-kilogramme packet is Sh129,” said an official of the Cereal Millers Association.

In most supermarkets a two-kilo packet is selling at above Sh130 while in the estate shops it is retailing at over Sh140.

Millers last month suffered a serious shortage of wheat after a congestion at the port of Mombasa delayed the discharge of 300,000 tonnes of the grain.

The move created a shortage in factories with some millers missing out on orders from clients, pushing the consumer prices up.

The port attributed the delays to huge maize imports under the subsidy programme that were given priority in offloading. It also blamed the delay on the rains that were pounding the region last month.

The government has closed the duty-free maize import window, helping ease the logistical nightmare at the port and given wheat priority in offloading.

The delays forced millers to pay $15,000 demurrage daily for a single ship.

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