News
Cereals millers can now import duty-free maize
Posted Monday, June 20 2011 at 22:24
Millers can now import maize without paying duty for a six-month period.
This would be done in accordance with the provisions of the fifth schedule of the East African Community Customs Management Act, 2005, said Deputy Prime Minister Uhuru Kenyatta in a gazette notice.
“Any maize imported into the country between June 10, 2011 and December 31, 2011 shall be cleared through customs without payment of duty,” Mr Kenyatta, who is also the Finance minister, stated in the notice.
There have been concerns that importers could take advantage of the directive to make a kill.
But Agriculture permanent secretary Romano Kiome defended the Finance minister’s proposal, arguing international prices were about the same as the local ones.
‘Good move’
Describing it as a “good” move, Dr Kiome said that farmers were holding onto millions of bags of maize hoping that the prices would rise further before releasing their grains to the market.
“You can’t tell them to sell when they are not sure where to get another supply,” he said.
As at May 31, farmers had 7.5 million bags of maize, traders were holding 2.2 million, millers 389,000 and the National Cereals and Produce Board had about 2.9 million bags.
Notwithstanding that stock, the government was out to increase supply to push prices down, said the permanent secretary.
“At any given time, we need in the country about 25 million bags when people know the stocks are low and exaggerate prices.”
Some people argue that the government ought to make farmers sell their grains at reasonable prices since it subsidises the cost of fertiliser and seeds.
“That is practically impossible. The move to assist farmers is meant to increase supply of cereals in the country. If we go that direction we will cause more havoc,” said Dr Kiome.
He stated that the government would not want to interfere with market forces as that would be counter-productive. “Some people would be disadvantaged. It would also sound draconian,” he said.
Sections 18 of the Customs Act lists maize among restricted goods and therefore prohibits its importation into the country.
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Submitted by wuod_aketchPosted June 22, 2011 01:40 AM
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Submitted by mungich
Farming is just a business like any other. Expecting farmers to subsidise other citizens makes sense only if other business pple eg oil companies, millers, bankers, matatu operators etc are already subsidising. As it is now, they are not. Last time I checked, maize flour isn't the only item whose cost has risen. The govt should make farming more profitable, seeing as farmers aren't in it for charity. This is the obvious solution to food shortages.
Posted June 21, 2011 05:06 PM -
Submitted by twendehague
Another scandal in the making...how sure are we that the ships were not awaiting these order in the high seas.....
Posted June 21, 2011 03:54 PM -
Submitted by ninjapapa
This is a good contingency measure. The government has to come up with long lasting strategic measures to avert the looming hunger disaster in Kenya. It will be shameful to reach a point to declare hunger in Kenya as a National disaster. And to farmers: If it is true that you are holding your grains for some motive of escalating prices, then something inside you is wrong.........Remember to act as a patriotic Kenyan by selling the grains to the government unconditionally.
Posted June 21, 2011 11:26 AM
RSS
The government is not doing anything to help the situation. We were told last season that there was so much maize rotting in the farms from lack of infrastructure and stores. Uhuru is proposing a quick fix that will make his friends richer in order that they fund his 2012 campaign from importation of maize.