Farmers are opting for the traders and millers who are buying the grain at Sh2,500 against Sh3,200 that the National Cereals and Produce Board (NCPB) offers.
The NCPB was allocated Sh7.1 billion last financial year to buy 2.4 million bags of maize at Sh3,200 for the strategic grain reserves.
Some traders said the government should allow the market forces of supply and demand instead of dictating prices.
Private millers and middlemen in the North Rift are having a field day buying maize at a throw-away price from farmers who are in a hurry for quick cash.
Farmers are opting for the traders and millers who are buying the grain at Sh2,500 against Sh3,200 that the National Cereals and Produce Board (NCPB) offers.
Farmers say they want to acquire inputs in readiness for planting season but the NCPB has not released cash for deliveries.
The NCPB was allocated Sh7.1 billion last financial year to buy 2.4 million bags of maize at Sh3,200 for the strategic grain reserves.
“The delay by NCPB to release funds for maize deliveries is forcing some farmers to sell the produce at throw-away prices,” said Milka Chesang from Waitaluk, Trans Nzoia County.
Some traders said the government should allow the market forces of supply and demand instead of dictating prices.
Most millers and middlemen are offering Sh2,500 per 90kg at farm gates with consumer prices are expected to increase due to low yield last season. “The maize prices are expected to increase to more than Sh3,500 per bag in the next few months due to declined harvest last season, which will automatically drive the consumer prices,” said Nelson Ng’etich of Saos Millers in Nandi County.
Maize harvest in Rift Valley reduced from 21 million bags to 16 million last season due to erratic weather and diseases.
“The government decision to buy maize at Sh3,200 per 90kg which is much higher than the market price will result in further increase in the cost of the produce and consequently lead to increase in consumer prices,” said Paul Rotich, an agricultural economist.
The NCPB has so far bought 2.3 million bags of 90kg maize and paid farmers Sh4.6 billion for the crop. Newton Terer, the managing director, says the board owes farmers Sh3 billion for maize deliveries.
“In the event that the government does not allocate more money under supplementary budget, middlemen will cash in on the desperation of the farmers to offer low prices and hoard the produce ahead of the impending shortage,” said Kipkorir Menjo, Kenya Farmers Association director.
Maize farmers in the region took to the streets when the NCPB suspended buying the produce after exhausting the Sh2.7 billion it was allocated in the 2014/2015 financial year.
“The farmers might be forced to go back to the streets unless the government comes up with clear policies to support agriculture which forms our economic blood vein by allocating more funds to buy the crop,” said Jackson Too from Moiben, Uasin Gishu County.
Some farmers claimed cartels were importing maize at as low as Sh1,800 to sell to NCPB in anticipation of a shortage.
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