Maize prices have increased slightly in the last week after the government opened NCPB depots to start purchases at Sh2,500 per bag.
Before the depots opened last week, maize was selling for an average Sh2,200 per bag but prices have risen to about Sh2,650 in most parts of Rift Valley and Western Kenya.
Farmers are pushing the government to increase prices at the NCPB to more than Sh3,200 per 90kg bag.
Chairman of the Parliamentary Committee on Agriculture Silas Tiren, who is also the MP for Moiben, said government would discuss farmers’ proposal to increase prices.
“Farmers say that at Sh2,500 per bag they are not making profits and as stakeholders we will meet and urge President Kenyatta to allow the Agriculture ministry to raise the prices,” Tiren said on Saturday.
He said farmers also oppose any maize imports because the harvest was good and imports would drive prices down.
“We have to do all we can to protect all our farmers so they can earn from their activities and increase production,” Tiren said.
Last week the government released Sh3 billion to the opened NCPB stores for maize purchase at Sh2,500 per bag. The board is already receiving maize Eldoret, Kitale and other areas.
Farmers led by director of the Kenya Farmers Association Kipkorir Menjo had met at the NCPB depot in Eldoret to discuss maize marketing problems.
The meeting was attended by Tiren.
“We have heard farmers’ complaints about maize prices and we will organise a meeting with the President to ask him to intervene and increase the NCPB price so farmers can make some profits,” Tiren said.
He said farmers had a bumper harvest and the government should offer them a better price, which will force other buyers to also raise their prices.
The NCPB expects to buy more than one million bags of maize from the farmers to help replenish its Strategic Grain Reserves.
The state had planned to roll out of the Warehouse Receipting System but the plan has faltered and will not be used due to delays in passing enabling legislation.
Despite more than 12 NCPB stores having been approved for use by farmers under the WRS, no maize has been delivered under the system. It is expected to be used at some point next year
The WRS Board led by chairperson Jane Ngige was in Eldoret, Kitale and Nakuru for meetings with farmers last month but no clear way forward was found on how the system will be applied.
The board will come up with legislation for WRS that will be subjected to public participation before approval and roll out.
“So many issues are still at discussion including legislation or rules guiding the WRS. For example, farmers want to know the minimum amount of maize that can be kept under WRS and for how long, among other issues,” Menjo said.
He said the government may have to implement WRS in phases because most farmers, especially small-scale growers prefer cash on delivery.
“Large-scale farmers can store maize for some time but small ones have immediate needs and don’t want to store maize, Menjo said.
Under the new system, farmers will be allowed to store their produce in certified stores. They will be issued with receipts of ownership they can use as collateral for loans and other financial assistance as they await better prices.