CS Linturi issues 7-day ultimatum to millers, grain importers

Agriculture Cabinet Secretary Mithika Linturi has issued a seven-day ultimatum to the millers and grain importers or risk losing their import licenses. 

Linturi held a consultative meeting at Kilimo House with millers and grain importers who were granted duty waiver licenses by the government to import maize flour and rice.

He issued the ultimatum to the millers and grain importers holding duty-free licenses to show proof of trade documents to ascertain that they have begun importing the commodities or risk their licenses being revoked.

“No maize and rice will be imported after August 2023 when the duty waiver permits expire,” the CS said.

The government granted millers and grain importers a duty waiver of 1.4 MT of maize and 1.1 MT of Rice in December 2022 to lower maize flour and rice prices.

The CS noted underperformance by the millers and grain importers in the importation of maize and rice since less than 10 per cent of the commodities have been imported after they were granted import duty waiver by the government in December 2022.

So far only 90,621 MT of maize and 95,381 MT of rice have arrived in the country according to official data from the Ministry of Agriculture and Livestock Development.

To boost efforts to reduce the price of maize flour and rice, the CS has further offered millers and grain importers who have already imported their duty-free consignments an additional allocation to import the commodities under the duty-free arrangement.

Linturi warned unscrupulous millers and traders who are alleged to have imported maize and rice under the tax waiver quota and attempted to re-export the same grains to neighbouring countries.

He said they are under investigation and if found guilty will face the full extent of the law.

“Already a government multi-agency team has impounded some grains that were being re-exported to neighbouring countries since they were imported under the duty-free arrangement to boost efforts by the government to lower food prices in the country,” he said.

He said no extension of the duty waiver licenses will be allowed beyond August 2023 when local maize farmers are expected to harvest their yields.