NO PROFITS

Low grain profits blamed on high taxes on farm inputs

Council wants state to reduce taxes eating into farmers' profits, say they make up higher percentage of production costs

In Summary

• Grains Council says farmers cannot sell produce at higher prices due to unfavourable market trends. 

• The lobby welcomes the enactment of the law legalising the warehouse receipt system as it offers farmers access to credit facilities 

EAGC chairman Juda Bett, CEO Gerald Masila, East African Affairs CS Phyllis Kandie and EAGC deputy secretary general Jesca Eriyo during a conference in October 2013
GRAIN FARMERS SUFFERING: EAGC chairman Juda Bett, CEO Gerald Masila, East African Affairs CS Phyllis Kandie and EAGC deputy secretary general Jesca Eriyo during a conference in October 2013
Image: FILE

 

Stakeholders in the grain sector want the government to reduce taxation on farm inputs and post-harvest equipment.

They attribute their low profits to the high cost of production.

East African Grain Council executive director Gerald Masila said farmers are finding it hard to sell their produce due to unfavourable market trends. 

Masila spoke to journalists at Kitale National Polytechnic ahead of an agribusiness expo scheduled for August 15-16 at the institution. More than 12,000 farmers expected to attend.

He, however, welcomed the enactment of a law to legalise the warehouse receipt system, saying it will offer farmers access to credit facilities.

“The Warehouse Receipt Act will see all warehouses licensed to be operational. This will be useful for farmers who face difficulties when seeking financial aid owing to ambiguous conditions,” he said.

A warehouse receipt system enables farmers to deposit storable goods (usually grains or coffee) in exchange for a warehouse receipt (WR).

A WR is issued by warehouse operators as evidence that specified commodities of stated quantity and quality have been deposited at a particular location.

Trans Nzoia county director of Agriculture Edward Osanya urged farmers to make use of grain stores put up by the county government to avoid post-harvest losses.

“We have grain stores in Kiminini, Saboti, Kwanza and Cherang’any while one is being put up at Endebess. Climate change has affected harvest times, hence the need for proper storage systems,” Osanya said.

Edited by R.Wamochie 

WATCH: The latest videos from the Star