Consumers are emerging as the main losers in rising maize prices caused by a race between millers and the National Cereals and Produce Board (NCPB) to purchase the grain.
The board has started buying maize from farmers at Sh2,700 per 90 kilogramme bag up from Sh2,500 as it faces competition from commercial millers.
In a strategy to outdo each other, millers are offering attractive prices and buying the crop at farm gate level. Whereas the board is offering Sh2,700 a bag and making prompt payment, millers have increased the prices to Sh3,000 at farm gate level.
NCPB managing director Joseph Kimote said they anticipate to buy a million bags in the next one month.
“We encourage farmers to deliver their maize that has met the standards to various stores. We want to assure farmers of prompt payment within 24 hours upon delivery,” said Mr Kimote.
The board has purchased about 3,000 bags of maize in the last three weeks as farmers hoarded their grains waiting for improved prices.
“We urge farmers to also take advantage of storage under regular warehousing and warehouse receipt systems, drying and fumigation facilities at affordable rates offered in our various stores,” said Mr Kimote.
“The maize prices are expected to increase further due to declining supply in the local market coupled with deteriorating imports from EAC member states that has disrupted our normal operations. Under such scenarios, we shall have no option but to push the additional costs to consumers by increasing the flour prices,” Mr David Kosgey, a miller in Eldoret said.
Unga prices have hit Sh102 up from Sh80 per two kilogramme despite on-going harvest of the crop in parts of the North Rift region.
But agriculture experts and millers have warned of an upsurge in maize prices due to declining stocks in the market.