High fuel costs, input taxes lower cereals acreage

 

Higher fuel costs and high taxes on inputs are increasing the cost of production and causing farmers to make losses, especially in maize and wheat.

Acreage will be reduced in the new planting season, they said.

North Rift farmers are urging Agriculture CS Peter Munya to meet stakeholders and come up with a proposal to review the taxes.

Patrice Chepkwony and director of the Kenya Farmers Association Kipkorir Menjo said reducing production costs will enable famers to produce more and export food as well.

“We farmers see a major decline in food production because the issue of taxes on farm inputs is not reviewed," Menjo said. He said MPs should better represent farmers and legislate to lower taxes.

The price of fertiliser was Sh3,800 per bag of DAP for planting and new consignments on the way will be more costly because of higher fuel costs.

“That means much of the fertiliser for planting in the new season will be very costly and farmers will be forced to cut down on acreage," Menjo said.

He said though the government had zero-rated the prices of some farm machinery like tractors, the tax on spare parts is high.

“That is like giving out with the right hand and then taking back  with the left hand," Menjo said.

High taxes make it impossible for Kenyan farmers to compete with farmers from neighbouring countries where production costs are cheaper.

Farmers in countries like Uganda and Tanzania can easily export to Kenya because their production costs are lower and they can sell at cheaper prices, farmer Patrice Chumba said.

Farmer Paul Tanui said government can help farmers and increase production by focusing on taxes that make crops costly.

KFA and other stakeholders have written to Munya demanding financing of the sector be increased to 10 per cent of the national budget as recommended in the Maputo Protocol.

They also want increased funding for the Agricultural Finance Corporation and NCPB.     BY THE STAR