Cereals board ordered to buy maize against regulator rules

Trucks loaded with maize queue at the National Cereals and Produce Board, Eldoret depot on December 05, 2013. An agriculture meeting is taking place to work on a policy that if implemented will see at least 30 per cent of the annual food requirement kept as a reserve for emergencies. FILE PHOTO |

What you need to know:

  • A new law passed last year set maximum weight on a single package of farm produce to 50 kilogrammes. The law has, however, been largely ignored by traders and now the government.
  • In his directive, Mr Koskei asked the cereals board to buy a 90-kilogramme bag of maize at Sh2,200.

Maize will be bought in a 90-kilogramme bag instead of the legal 50 kilogramme.

This means the government will flout its own regulation on packaging of farm produce.

The National Cereals and Produce Board has been ordered by Agriculture Cabinet Secretary Felix Koskei to buy the maize in 90kg bags.

This comes as the new agriculture regulator started a campaign to enforce the rule that came into effect last month.

A new law passed last year set maximum weight on a single package of farm produce to 50 kilogrammes. The law has, however, been largely ignored by traders and now the government.

The interim director-general of the regulator, Mr Alfred Busolo, said: “The development and marketing of food crops was left to market controls and culture.”

MARKET RATES

The crop directorate, Mr Busolo added, will bring order and spur growth by applying standard measures.

Flouting the rule attracts a penalty of Sh500,000 or jail for a period not exceeding a year.

In his directive, Mr Koskei asked the cereals board to buy a 90-kilogramme bag of maize at Sh2,200.

He also offered to increase this to Sh2,700 (by Sh500 rebate per bag) to “compensate the farmer for the challenges of maize disease and delayed rains.”

Briefing the media at Kilimo House, Mr Koskei said the price was set in line with the prevailing market costs that range between Sh1,300 and Sh2,300 to be consistent with the free trade area created with other East African Community member countries.

“The price considered that we are in a free trade area with other East African Community states and the consumer prices locally. The price is competitive and will compensate farmers on the cost of production and get a profit margin out of it,” he said.

Mr Koskei said experts had placed the cost of production per bag in the North Rift at between Sh1,500 and Sh1,800 and around Uasin Gishu at between Sh1,400 and Sh1,600.

“This year we saw bumper harvest that came against concerns over delayed rains and maize disease,” he said.