Millers on the spot over maize crisis

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Millers raised the alarm in March and wrote to all ministries concerned over a looming maize shortage.

Two millers have been asked to take responsibility for the current maize shortage after they allegedly bought large quantities of cereal and exported it to Southern Sudan.

The millers did that despite a ban on the exportation of maize, Agriculture minister Sally Kosgei told the Nation on Monday.

The minister, who declined to name the millers, said the “two millers are also giving us problems in the sugar industry”.

She said during her earlier tour she found a lot of maize in stores but this time it was no longer available.

“It was during one of the government’s security meetings when the National Security Intelligence Service brought this issue to the attention of the government,” she said.

However, Cereal Millers Association chairman Diamond Lalji said: “Kenyans need to face the facts that there is a deficit in maize production in the country.”

Consumption has risen

According to Mr Lalji, maize production estimates from the Ministry of Agriculture have remained the same for the last 10 years yet the consumption has risen steadily during this period.

“If the Ministry of Agriculture has credible evidence that there are millers or traders who exported grain to Sudan, the ministry should take action against those involved,” said Mr Lalji.

Millers raised the alarm in March and wrote to all ministries concerned over the looming maize shortage.

In the letter, the millers said they were unable to source adequate supplies from farmers as they were holding their maize in anticipation of higher prices, causing uncertainty in the market.

“Any uncertainty in the business environment leads to speculation, hoarding and shortages which consequently lead to price increases,” the letter read.

According to the millers’ association, the government needed to create a predictable business environment by ensuring that there were adequate stocks of maize available to millers to avoid a situation that occurred in November 2008 when the price of maize flour was more than Sh120 for a 2-kilogramme packet.