Bill seeks to reintroduce minimum prices for tea, coffee

What you need to know:

  • The campaign to cushion farmers from low earnings from tea and coffee exports has taken a new turn with the drafting of a Bill seeking to reintroduce guaranteed minimum prices (GMP).
  • The GMP which factor in production cost plus margin for farmers are still in use in a number of Asian economies, but were abolished in Kenya in 1980s as the State opted for input subsidies.
  • Under GMP, farmers receive subsidies when market prices fall below the set threshold as a way of motivating them to retain loss-prone farming ventures.

The campaign to cushion farmers from low earnings from tea and coffee exports has taken a new turn with the drafting of a Bill seeking to reintroduce guaranteed minimum prices (GMP).

Welcome!

You're all set to enjoy unlimited Prime content.