Maize prices drop on increased supply from Uganda

Maize prices have dropped by up to 20 per cent following increased supply from Uganda and release of stored grain to the market.

A 90 kilogramme bag of maize is going at between Sh2,400 and Sh2,600, down from Sh3,000 last month.

“The prices have been affected by stable inflow of maize from the neighbouring countries, especially through Swam and Malaba border,” said the Cereal Growers Association chief executive Anthony Kioko.

The relatively low prices have helped stabilise the prices of maize meal, with a two kilogramme packet going at an average of Sh105.   

The Ministry of Agriculture, in a report assessing prospects for the short rains crop, said there was increased cross-border trade in the year to February 2014 compared to the corresponding period last year.

The food balance sheet report for February indicates that the number of bags brought in from Uganda went up to almost a million compared to 188,000 bags over a corresponding period last year.

Farmers have also released their stocks to the market after hopes of striking better prices faded with the announcement that there were enough stocks to see the country to the next harvest in July.

Growers had been holding out for higher prices on projections that last seasons production had declined sharply because of erratic rainfall and attack from the viral disease maize lethal lecrosis, leaving a deficit of 10 million bags.

Some farmers have also offloaded stocks to raise money for meeting this season’s planting expenses.

The National Cereals and Produce Board buys maize at Sh3,000 per bag. This had seen millers offer to buy the commodity at Sh3,100 per bag.

Mr Kioko said he expected the market price to drop further in July with the onset of harvesting in lower eastern and in South Rift in September.

The assessment report showed that farmers were holding 11.4 million bags, traders 2.3 million bags, millers 754,000 bags and NCPB had 2.8 million bags.