- Kimote said millers and other processors will pay a minimum of Sh3,700 per 90kg bag of wheat for grade 1.
- All wheat handled by NCPB will be charged a consolidated fee of Sh81 for 90kg bag for weighing, grading, conveyance for intake, outloading.
Image: COURTESY
The National Cereals and Produce Board will purchase wheat under the Wheat Purchase Programme also referred to as C-60.
NCPB managing director Joseph Kimote said on Thursday that the board will participate as an aggregator whereby farmers will deliver their wheat to Nakuru, Narok, Eldoret and Nairobi silos.
"Once farmers have delivered their grain, millers can buy the wheat from the board and collect it from any of the above silos. The wheat will be traded under three grades—grade 1 (bushel weight of 78 and above), grade 2 (bushel weight of 75 - 77.9) and grade 3 (below bushel weight of 75)," he said.
Kimote said millers and other processors will pay a minimum price of Sh3,700 per 90kg bag of wheat for grade 1, Sh3,600 for grade two, but grade three will be based on any agreed price between the millers and farmers.
He said it will be a willing seller, a willing buyer basis.
Kimote said all the wheat handled through the NCPB silo will be charged a consolidated fee of Sh81 for a 90kg bag for weighing, grading and conveyance services for intake and out loading.
"The fee will be shared equally between the millers and farmers. Other related services like drying and cleaning will be offered separately at the board's prevailing fees," he said.
Kimote said the Wheat Purchase Programme is aimed at protecting farmers from cheaper imports.
It will also promote local production of wheat to bridge the gap between production and consumption.
"NCPB is also buying paddy rice from farmers in Taita Taveta county and Bura scheme in Tana River county. By purchasing paddy from Kenyan farmers, the board is promoting local rice production, improving the rural economy and boosting food security," he said.
Other commodities that the board is buying to support Kenyan farmers are different varieties of beans and green grams.
Last month, Agriculture CS Peter Munya said wheat prices will this year rise by Sh450 on account of the cost of production and importation.
That means farmers will earn a minimum of Sh3,700 per 90kg bag compared to last year’s price of Sh3,250.
Munya said the ministry meets with wheat farmers and millers to agree on the pricing every year.
He said the price increase took into account the cost of production and importation.
Munya said they arrived at the price of Sh3,700 for a 90kg bag of grade 1 after discussions with the Cereal Millers Association and wheat farmers under the Cereal Growers Association.
Farmers were asking for the price of Sh4,300 but the CS said they had to take into account many issues including the cost of production and importation.
“But we also agreed that moving forward, we will work on a formula that determines the price of wheat taking into account the cost of production and cost of importing. This will be done instead of holding the annual discussions to agree on a price,” Munya said.
He assured Kenyans that this will not affect the cost of bread, which is currently at Sh55.
Munya said local wheat production has been going down and that the bulk of our wheat is imported. We import more than 90 per cent of wheat requirements into the country.
Millers mill 1.8 million bags annually and another 20-25 million bags of wheat are imported annually because Kenya produces soft wheat which has to be blended with hard wheat. Hard wheat forms the bulk of the imports.
Cereal Growers Association CEO Anthony Kioko said the bulk of wheat consumed in Kenya is imported mainly from Russia, Ukraine and South America.
-Edited by SKanyara