The National Cereals and Produce Board (NCPB) is facing difficulties selling maize it imported under the subsidy programme that was meant to cushion consumers from high flour prices.
Millers are reluctant to buy the maize being sold at Sh2,300 per 90kg bag despite having been imported at Sh4,000.
The NCPB is holding 350,000 out of the 630,000 bags it released to millers last year at Sh2,300 before the end of the subsidy programme on December 31, 2017.
“We still have more than 350,000 bags of maize imported by firms from Mexico in our stores and millers are invited to buy them,” Mr Titus Maiyo, NCPB’s corporate affairs manager, said.
FLOUR PRICES
Mr Maiyo dispelled fears that the grains – which have been in their stores for about two years – were unfit for human consumption.
“There is proper storage of the grains in our silos and is suitable for human consumption,” he maintained.
The government pumped in Sh6 billion to import maize to lower flour prices that had hit Sh153 for a 2kg bag before coming down to Sh90 following the intervention.
But millers are reluctant to purchase maize from NCPB and are opting for cheap produce from Uganda going for as low as Sh1,200 per 90kg bag.
“We are operating in a liberalised market economy and there is nothing wrong doing business under the East Africa Common Market protocol,” one of the traders in Eldoret who requested not to be named said.
CONSUMERS
Some of the millers have been forced to scale down operations, milling twice a week, as the demand for the sifted maize flour dropped drastically in the market.
“We have no option but reduce our operations and possibly consider restricting due to low demand for our products by consumers,” Mr Kipgnetich Kimutai of Ineet mills in Eldoret said.
But low maize prices are an advantage to consumers most of whom have opted for posho maize flour, which is more affordable.
“I buy two kilograms of maize at Sh50 and mill at Sh10 – which is much affordable as compared to Sh120 offered for the same quantity in retail outlets,” Ms Jennifer Cheptoo from Mwanzo in Eldoret said.
Dairy farmers are also benefiting from the fall in maize prices as they access cheaper dairy meal, which now retails at Sh1,500 down from Sh2,200 per 50kg.
FARMERS COMPLAIN
Some the middlemen in the cereals sector have been accused of importing maize in bulk from Uganda and delivering the produce to the NCPB stores immediately it opened its doors to buy the produce while the local farmers were still holding onto theirs.
The farmers are demanding over Sh3.5 billion for maize deliveries to the board.
Moiben MP Silas Tiren accused the government of subjecting farmers to financial challenges by failing to honour outstanding payments.
“The maize from Uganda, Tanzania and Mexico is not imported on debt, but why have our farmers not been paid on time?” he posed.
He added that it was important that the government allocates 10 percent of its budget to agriculture, according to the Maputo declaration.