EXPLOITATION

Middlemen invade North Rift, Western as prices drop

Buy low now, hoard and sell high, make a killing

In Summary

• With severe drought in much of the country and neighbouring regions, a maize shortage is expected in mid-next year.

• Middlemen James Inzai said harvests this year are likely to be lower as farmers facing very high costs of farm inputs especially fertiliser.

Lorries belonging to middlemen parked in Eldoret for maize purchase and transportation on October 24
MAKE A KILLING: Lorries belonging to middlemen parked in Eldoret for maize purchase and transportation on October 24
Image: MATHEWS NDANYI

Middlemen have invaded parts of North Rift and Western where maize prices have have dropped drastically as harvesting begins.

Some middlemen are buying maize that is not fully dry.

They anticipate that with severe drought in much of the country a maize shortage is likely in mid-mid next year.

Middleman James Inzai said the harvest this year is likely to be lower because farmers have been facing very high costs of farm inputs, especially fertilizer.

“That is why I decided to buy maize at this early stage, dry it and stock it for the future when prices will go up again,” Inzai said.

The country usually produces about 40 million bags of maize, mostly from the North Rift but agriculture officials estimate about 35 million bags.

Prices were as high as Sh7,000 per 90kg bag a month ago but a bag now sells for less than Sh4,500 and farmers fear prices will drop to less than Sh3,000 by mid-next month.

The middlemen who have stormed the regions are buying at an average price of Sh4,000 per bag.

A group of leaders from the region have already urged the government to start early preparations to purchase maize from farmers through the National Cereals and Produce Board.

Spend more on fertiliser

Mandago said as prices now are about Sh3,500 per 50kg bag, farmers will be forced to spend more on fertiliser while earning less from maize.

Senator for Uasin Gishu Jackson Mandago says the drop in prices may reduce the financial ability by farmers to afford farm inputs for next year.

“We urge the government to make early plans on how to purchase the maize from farmers at good prices so they can produce adequate food in the new year,” Mandago said.

Two weeks ago, Mandago told a meeting in Eldoret the prices of fertiliser for planting should be reduced to Sh1,500 per 50kg bag because of the swift drop in maize prices.

Deputy President Rigathi Gachagua attended the session.

Mandago said as prices now are about Sh3,500 per 50kg bag, farmers will be forced to spend more on fertiliser while earning less from maize.

DP Gachagua rejected the lower prices of fertiliser but promised the government would look into the matter.

“As government, we have already taken steps to reduce the price of fertiliser but it’s not possible at the moment to go to Sh1,500 per bag as suggested," Gachagua said.

Nandi Senator Samson Cherargei and Uasin Gishu Deputy Governor John Barorot also urged the government to reduce taxes of farm inputs so farmers can produce more food.

“We should not face famine in some parts of this country yet our farmers can produce excess food stocks if supported well,” Cherargei said.

Barorot said the cost of farm machinery such as tractors should be brought down through reduction in taxes by the new administration.

“The government should also lower taxes on animal  feed so our dairy farmers can increase their productivity as we plan to make the country food secure,” Barorot said.

He said Uasin Gishu county has planned to reintroduce extension services for farmers to help them modernise and also deal with challenges, such as treating the increase in crop diseases diseases.

(Edited by V. Graham)

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