FINANCIAL CHALLENGES

Farmers push for budget allocation to revive agriculture sector

They are worried that key institutions are ailing due to financial challenges

In Summary

•The farmers are also urging the state to help reduce the cost of production through policy measures and tax reliefs in the budget to be tabled in parliament this month.

•Maize production has increased in the last two years, with farmers harvesting more than 40 million bags annually.

A section of the NCPB depot in Eldoret
A section of the NCPB depot in Eldoret
Image: BY MATHEWS NDANYI

Maize farmers have asked the government to increase financial allocations to the agriculture sector in the forthcoming budget to help revive parastatals including the National Cereals and Produce Board.

They want the state to adhere to the Maputo Protocol which was signed by African government’s committing to allocate at least 10 per cent of the annual budgets to the agriculture sector.

The farmers are worried that key institutions in the sector including NCPB, Agricultural Finance Corporation and Agricultural Development Corporation are ailing due to financial challenges.

“These are key institutions which facilitate farmers but have been neglected and are on the verge of collapse,” Ben Kiptoo Uasin Gishu farmers spokesman said.

The state owes NCPB more than Sh16 billion and the farmers want the money paid to revive the board so that it can help in playing its role in marketing cereals for them.

The farmers are also urging the state to help reduce the cost of production through policy measures and tax reliefs in the budget to be tabled in parliament this month.

They have complained that maize prices have dropped to Sh2,300 per bag from Sh2,900 after the government opened borders with Tanzania.

Kenya Farmers Association director Kipkorir Menjo said the farmers can not compete with those in neighbouring countries because of the high costs of production in Kenya.

“We are asking MPs that we have enough resources allocated to the agriculture sector and that they should put in place tax reliefs and policies that will aid the sector to flourish,” Menjo said.

Other farmers Barnabas Kibos and Christopher Kolum said opening borders for trade with neighbouring countries were welcome but the government should ensure it doesn’t disadvantage local farmers through policies and taxes that increase the cost of production.

“The costs of fuel and fertilizer are always high and that is why we can not produce at costs that will enable us to compete in the open markets,” Kolum said.

He said seed prices and other farm inputs were also higher compared to neighbouring countries.

The Maize prices have dropped by more than 35 per cent in most parts of North Rift and Western Kenya after the government allowed imports from mostly Tanzania following the recent visit by President Suluhu Hassan.

Before the order by President Kenyatta to release maize that was being held at the Tanzanian border, the prices in the region were average at Sh2,800 per 90 Kg bag but currently, the prices have dropped to Sh2,300 per bag.

Farmers say the imports will affect the local markets but they anticipate that the imports will reduce in less than two months leading to prices increase.

Large scale farmers are still holding more than 12 million bags of maize in their stores which may not be sold until after a decline in imports from the neighbouring countries.

“The government should also move to fully implement the Warehouse Receipting System so that farmers can be able to store their commodity until when the prices are good,” Menjo said.

Maize production has increased in the last two years, with farmers harvesting more than 40 million bags annually.

Agriculture officials estimate a similar quantity this year.

However, marketing problems with low prices remain the greatest challenge for the farmers.

 

Edited by Kiilu Damaris

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