FARMERS' MARKETING WOES

Maize prices drop by 40% due to cheaper Tanzanian imports

Produce sold for Sh2,800 per 90kg bag but currently it has dropped to as low as Sh2,000.

In Summary
  • Its estimated that more than eight million bags have been imported into the country in the last two months.
  • Farmers say they are now waiting for the national budget, hoping new measures will be outlined by Finance CS Ukur Yatani to protect them.
Officials inspect maize stocks at the NCPB stores in Eldoret
HARVEST: Officials inspect maize stocks at the NCPB stores in Eldoret
Image: MATHEWS NDANYI

Maize imports from Tanzania have depressed the prices of the commodity in Kenya's breadbasket, Uasin Gishu county.

Prices have dropped by more than 40 per cent in most parts of North Rift and Western Kenya since the government allowed imports from the southern neighbour a month ago.

The move followed a state visit by President Samia Suluhu Hassan.

Before the order by President Kenyatta to release maize that was held at the Tanzanian border, the prices in the region averaged Sh2,800 per 90kg bag but currently, the prices have dropped to as low as Sh2,000.

“The imports are still flowing in in very large quantities as prices of local maize continue to decline. Farmers thought the imports would be minimal but there has been an influx in the recent weeks,” said Kenya Farmers Association director Kipkorir Menjo.

It is estimated that more than eight million bags have been imported into the country in the last two months.

Farmers say they are waiting for the budget to be tabled in Parliament in the hope that new measures will be outlined by Finance CS Ukur Yatani to protect them.

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 neighbouring countries.

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

The farmers want the state to adhere to the Maputo Protocol, which was signed by African governments committing to allocate at least 10 per cent of the annual budget to agriculture.

The farmers are worried that key institutions in the sector including NCPB, the 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 due to financial problems,” said Uasin Gishu farmers spokesman Ben Kiptoo.

The state owes NCPB more than Sh16 billion and the farmers want the money paid to revive the board so that it can effectively play 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.

Farmer Jackson Kibias said they cannot compete with neighbouring countries because of the high costs of production in Kenya.

“We are asking MPs that through Parliament 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,” Kibias said.

The farmers said opening borders for trade with neighbouring countries was 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 fertiliser are always high and that is why we cannot produce at costs that will enable us to compete in the open markets when selling our produce,” Kolum said.

He said the prices of seeds and other farm inputs were also higher compared to neighbouring countries.

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

Maize production has increased in the last two years, with farmers harvesting more than 40 million bags annually. Agricultural officials estimate a similar quantity this year. Marketing and low prices remain the greatest challenges for the farmers.

Edited by Henry Makori

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