Stage set for increase in maize flour prices as millers urge state to import
Agricultural experts and millers have warned of a major crisis that might force the government to review importation of maize under the subsidy programme to lower flour prices that have increased beyond the reach of most households.
Experts have warned of further increase in maize prices due to a decline in yields from 44 million to 33 million bags.
“We are staring at a looming disaster due to declined maize supply. Most of the large-scale farmers are hoarding maize, which has pushed prices to above Sh3,000 per 90-kilogramme bag” said Ezekiel Kosgei, an Eldoret-based land economist.
An estimated 2.5 million families, especially in the northern parts of the country, are facing hunger, with the Ministry of Agriculture warning that the country has maize stocks to last only three months.
Agriculture Principal Secretary Hamadi Boga said most of the maize is imported from Tanzania and Uganda.
“We are tracking production and consumption of this critical commodity and available stocks,” said Prof Boga.
He said did not disclose the quantity of maize in the stores but according to a report by the National Cereals and Produce Board (NCPB), the National Food Reserve is completely depleted and there is need therefore for urgent restocking. NCPB Chairman Mutea Iringo said some Sh10 billion is required to restock National Food Reserve for 2021/2022 Financial Year.
The food commodities required for restocking include three million bags of maize (90kg) valued at Sh7.56 billion, 50,000 bags of beans (90kg) at Sh405 million, 30,000 bags of green grams (90kg) at Sh270 million and 100,000 bags of rice (50kg) at Sh600 million among other commodities.
The Kenya Food Security Outlook for October 2021 to May 2022 warns that poor short rains will keep supplies below average resulting in an increased dependence on cross-border imports from neighbouring countries such as Uganda and Tanzania.
The report further indicates that maize imports increased from 520,835 (90kg) bags in August to 542,796 bags (90kg) in October as compared to 3,811,947 bags between January to October 2020.
Millers have now petitioned the government to allow the importation of maize to cushion against a biting shortage of the commodity that has resulted in sky-rocketing prices. BY DAILY NATION
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