• Cereal growers say it could lead to a drop to Sh2,950 per 90kg bag from Sh3,100.
• There is usually an annual deficit of eight million bags which is met through importation.
Image: FILE
There is a wheat glut in the country and farmers are stuck with their produce.
Cereal Growers Association chairman Farnie Kruger confirmed an increase in production this year. He said this could lead to a drop to Sh2,950 per 90kg bag from Sh3,100.
Kruger urged the government to support the farmers to benefit from this season’s good harvest.
According to a miller who requested anonymity, wheat harvest from lower Narok was late to the market this year.
“Normally, we buy wheat from lower Narok first, then we buy the harvest from Nakuru and Eldoret farmers. But this season, the harvests have coincided and now there is so much wheat and millers are under pressure,” the miller said.
He said prices of wheat are normally fixed through an agreement between millers and the government, but this depends on the quality of wheat in the market. A 90kg bag sells at between Sh3,000 to Sh3,100.
Agriculture Chief Administrative Secretary Andrew Tuimur explained that ordinarily, millers have to buy the bulk of local wheat and then if they want to import, they get a duty remission.
The country produces about 4 million bags annually against the consumption of between 10 million and 12 million bags. There is an annual deficit of eight million bags which is met through importation.
“Those who want to import are given duty remission of 10 per cent instead of being charged the 35 per cent. As long they have bought the local wheat. This is an incentive to ensure millers have bought locally,” he said.
The CAS said wheat production in 2017 was 4 million bags while last year's was 4.6 million.
“Harvesting is still ongoing in some areas. We will be able to know the production figures towards the end of the year when all farmers have harvested,” Tuimur said.
Millers have taken issue with the government saying they (millers) are made to subsidise the farmers some yet it “is the government's responsibility”.
“Nowhere in the world do millers subsidise farmers. It is the government that gives subsidies. This is a big burden to millers and sometimes it becomes cheaper to import maize than buy it locally,” the miller said.
Edited by R.Wamochie