EAGC calls for free grains deals

Cereal Growers Association chief executive officer David Nyameino with Eastern Africa Grain Council executive director Constantine Kandie at a past function. Photo/PHOEBE OKALL

Players in the regional food chain are pushing for the maize sub-sector to be allowed to operate freely for more food security and improved intra-regional trade.

The Eastern Africa Grain Council (EAGC) wants Finance ministers in the EAC trade block to consider lifting the ban on cereal exports and instead encourage intra-regional dealings.

The council says that it is concerned with the continued government involvement in the cereals sub-sector, insisting that such a grip was a stumbling block towards growth and production.

“The key concern for players in the maize and grain industry is the continued involvement by governments in an era where other sectors have been relieved of the same and the lack of progress in finding a long-term solution for a sector that has more potential than anything else,” EAGC executive director Constantine Kandie said on Tuesday.

Ms Kandie asked the respective ministers for Finance to look at efforts that will open the market for more competition.

Such measures should also encourage farmers to approach maize growing as a business undertaking.

Maize market

In 2007, the size of the regional maize market (EAC and Comesa) was estimated at slightly over $1 billion with the region’s share in this being a mere 13 per cent.

“This clearly demonstrates an existence of a regional market potential of about 77 per cent which is up for grabs,” said Ms Kandie.

An analysis done by the EAGC says that a time has come for the Kenyan and indeed other East African Community governments to uphold free market principals in the maize sector where the forces of demand and supply is left to dictate the cost of the produce.