Traders buy maize at low prices as receipt system roll out delays
Maize prices in the North Rift region have dropped drastically after middlemen flooded the region following delays by the NCPB to roll out the Warehouse Receipt System.
The new system was to be rolled out in October.
The middlemen are buying a 90kg bag of maize for less than Sh2,000. The price is lower than the Sh2,500 President Uhuru Kenyatta last month directed the NCPB to pay farmers.
The Kenya Farmers Association (KFA) has warned farmers not to sell their produce at throwaway prices and wait until the government rolls out the WRS.
“The traders who have flooded the farms to buy maize are misleading farmers that they should dispose of their produce because they will not have alternative markets due to challenges at the NCPB," Menjo said.
He wants the government to quickly roll out regulations that will guide the WRS so that farmers can understand how it will operate and be able to effectively use the new system.
Under the system, farmers will be able to store their maize at approved NCPB warehouses and sell their produce when prices improve.
Farmers who store their maize in warehouses will be issued with receipts that can be used for various transactions, including purchase of farm inputs and access to loans.
“Once the WRS regulations are rolled out for public participation, farmers will be in a better position to use the system instead of being exploited by the middlemen,” Menjo said.
Agriculture CS Peter Munya said the ministry will next week meet with farmers to help them understand the WRS system. The government has already approved more than 12 NCPB stores to be used as warehouses once WRS is rolled out.
Paul Korir from Trans Nzoia said many farmers are selling their produce at low prices because of uncertainty and confusion over the WRS.
“Middlemen are advising farmers to sell their produce claiming that the NCPB will not help them and soon the prices will be even much lower,” he said.
But Menjo said traders want to mop up all the maize and cause a shortage early next year, so they can sell it at higher prices.
“Let the farmers be patient with their produce for a little while because the market will stabilise once the government rolls out the WRS system and provides a baseline price for maize,” he said.
Farmers in the country especially the high producing counties in the North Rift are expected to harvest more than 38 million bags of maize this year.

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