The National Cereals and Produce Board is going to sell maize at Sh1,600 per bag to millers to create space to buy maize from farmers at Sh2,500 a bag (see P10). Madness!
Government bought this Mexican maize for Sh3,200 per bag and will lose Sh2.72 billion selling it.
This will depress prices in the market and make life very difficult for the 90 percent of maize farmers who cannot sell to NCPB.
There is also a high risk of a revolving door in NCPB. The same maize will go out at Sh1,600 per bag and come back in at Sh2,500 per bag.
It is time for government to stop subsidising maize purchases. There is no logic to these huge subsidies, especially when NCPB buys less than 10 percent of the maize harvest. This scam only helps well-connected farmers and maize importers.
Let's keep the 50 percent duty on imported maize to protect farmers but allow the private sector to import maize all year around. And then we can stop paying billions to subsidise this insanity at NCPB.
Quote of the day: "The war against the devil continues. But there is still much work to be done and to finish the job we must get to Kinshasa."
Laurent-Désiré Kabila
The Congolese President was assassinated on January 16, 2001.
