• Staff at the cereals board will undergo vetting which will involve the DCI and EACC
• Commodity exchange will facilitate the trade of warehouse receipts in a manner that will eliminate the need for physical movement of the goods.
Image: Jack Owuor
The government will on Wednesday make changes at the National Cereals and Produce Board to boost production, trade and consumption of staples beyond maize.
Agriculture Principal Secretary Hamadi Boga told the Star on Monday that the reforms will include vetting and training to align NCPB officials with new roles.
“It will also improve efficiency and clearly delineate its functions from those of the Strategic Food Reserve Trust Fund,” he said.
In the changes, the staff at the cereals board will undergo vetting which will involve the Department of Criminal Investigation and the Ethics and Anti-Corruption Commission.
He said with the new focus by the government to liberalise the agriculture sector and encourage private sector participation, NCPB will initially cede at least 25 per cent of its storage capacity across the country through competitive commercial leasing.
This, according to the ministry, will ease effective early participation of the private sector and the establishment of a warehouse receipt system.
“Increased private sector participation will attract competition and shore up professionalism, which will benefit farmers, traders and consumers alike. The National Food Reserve will use the Warehouse Receipt System and Voucher Incentive Programme for market stabilisation through the commodity exchange which is modelled on the stock exchange,” Boga said.
He explained that the commodity exchange will facilitate the trade of warehouse receipts in a manner that will eliminate the need for physical movement of the goods.
The PS said this will allow producers to delay the sale of their maize or any other produce until prices are favourable.
“In the meantime, they will be facilitated to borrow against receipts issued for goods in designated warehouses. Our approach is to facilitate the development of a variety of staples through research and supportive policies. That is why the envisaged commodity exchange will trade in other goods beyond maize,” he said.
Boga added, “And while we have started from the tail end of the value chain, we are working on boosting our productivity which is one of the lowest anywhere. We are inefficient producers and we need to change this so farmers can get a meaningful reward for their industry. The end result will be a food-secure country, employment in farms and related industry, as well as more disposable incomes.”
Edited by R.Wamochie