Double blow to farmers as maize prices dip amid rising cost of farm inputs

Maize farmers have suffered a major blow after the price of a 90kg bag dropped by Sh400 to Sh2,800.

This comes at a time cereal farmers are battling rising costs of farm inputs, which might see many reduce the acreage under maize this season.

A majority of large and small-scale millers have scaled down purchasing of the grains to cut costs due to falling demand for flour.

The arrival of cheap produce from East Africa Community (EAC) member states – notably Uganda  and Tanzania – has also contributed to the decline in maize prices, much to the relief of consumers.

“We are witnessing a decline in demand for flour due to low purchasing power among consumers,” said Grain Belt Millers Association Chairman Kipng’etich Mutai.

Millers have warned of further decline in maize prices once the short-term crops are harvested.

“Some consumers have opted for posho mill flour, which has impacted negatively on our operations,” said Mr Mutai.

Maize flour prices have in the past two months increased from Sh80 to Sh110 for a two-kilogramme packet, but the prices are expected to reduce following the arrival of cheap produce.

Read: Stage set for increase in maize flour prices as millers urge state to import

Maize from EAC countries is selling at Sh2,800, compared to Sh3,200 per 90-kilogram bag for the local produce.

According to Agriculture Principal Secretary Hamadi Boga, most of the maize is imported from Tanzania and Uganda after production of the stable declined by 4.3 per cent from 44 million bags in 2019 to 42.1 million bags last season.

“We are tracking production and consumption of this critical commodity and the available stocks. Currently, imports are coming in from the region –Tanzania and Uganda,” said Prof Boga.

Consumers Federation of Kenya (Cofek) has blamed the skyrocketing prices of maize flour on hoarding of maize by millers who purchased the produce at low cost during the harvest period.

“It is the cereal millers who are causing artificial shortage by hoarding their stocks. They must be investigated. They want to resell their stock expensively,” said Cofek secretary-general Stephen Mutoro.

“After the Ministry of Agriculture Food and Nutrition Security report showed that the domestic maize stock in October stood at 11.3 million bags, they should have acted on restocking immediately,” added Mr Mutoro.

A 50-kilogram bag of fertiliser is going for Sh6,000, up from Sh3,200 while a 25-kilogram bag of maize seeds is selling at Sh4,700, up from Sh4,500.

“With the maize price at Sh3,000 per 90 kg bag, a farmer will have to sell two bags to raise Sh6,000 for fertiliser, which is not enough for an acre of land,” said Mr Wilson Langat from Chepkumia, Nandi County.

“It is becoming increasingly difficult to break the vicious cycle of high production cost against declining market prices, signalling a tough economic season for maize farmers,” said Mr Eliud Kibet from Kerita farm in Kesses, Uasin Gishu County.

The country requires about 650,000 tonnes of fertiliser annually but some farmers have to plant crops without it due to its high price.

The government has introduced a raft of reforms, including providing low-cost fertiliser through the e-voucher system.

Read: Rising cost of farm inputs pushes up price of maize

The fertiliser is to be issued through registered cooperatives.

According to Agriculture Cabinet Secretary Peter Munya, the government will meet 70 per cent and farmers the remaining 30 per cent of the cost under the e-voucher system.

“Farmers will buy fertiliser from the National Cereals and Produce Board (NCPB) and th Kenya National Trading Corporation (KNTC) using the E-Voucher system to cushion them from high production cost,” said Mr Munya while addressing farmers in Trans Nzoia County over the weekend.

Mr Munya attributed the rise in fertiliser prices to a global increase in the cost of raw materials.

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