Millers, middlemen cash in on cereal farmers desperation to sell produce

A maize farmer takes guests on a tour in his farm. Leaders from the North Rift region have petitioned the government to regulate importation of cheap grains to cushion the farmers from losses. FILE PHOTO | NMG

What you need to know:

  • If the government does not allocate more maize under supplementary budget, middlemen will cash on the desperation of the farmers
  • “The EACM agreement is hurting the local farmers due to flooding of cheap produce from member states like Uganda,” said Trans- Nzoia Governor Patrick Khaemba.
  • The government allocated Sh7.1 billion to buy 2.4 million bags of maize this season to replenish its Strategic Grains Reserve stocks.

Millers and middlemen are emerging beneficiaries as cereal farmers in the North Rift region rush to sell the produce to purchase farm inputs for next planting season.

Whereas millers have taken advantage of the rush by farmers to sell the produce offering as low as Sh2,400 per 90 kilograms bag, middlemen are benefiting from the East African Common Market (EACM) protocol, importing the crop from Uganda at Sh1,800 per 90 kilograms bag.

Leaders from the region yesterday petitioned the government to regulate importation of cheap grains to cushion farmers from losses.

“The EACM agreement is hurting the local farmers due to flooding of cheap produce from member states like Uganda,” said Trans- Nzoia Governor Patrick Khaemba.

Most maize produce from Uganda enter the country through the Suam border in Trans-Nzoia. Maize prices in Eldoret have declined from Sh3,600 to Sh2,400 while the crop is selling at Sh 2,000 down from Sh2,800 in Nakuru as cheap produce continues to flood local the market.

The government allocated Sh7.1 billion to buy 2.4 million bags of maize this season to replenish its Strategic Grains Reserve stocks.

Cereal farmers in the region under the Cereal Growers Association said some influential cartels who enjoy government protection were taking advantage of the anticipated maize shortage to import cheap produce before selling the crop to the National Cereals and produce Board (NCPB) at exorbitant prices.

“Some of these cartels buy maize from Uganda as low as Sh1,800 per 90 Kg and sell it to NCPB at Sh3,200 while others hoard the crop in anticipation of increased prices,” claimed Kipkorir Menjo, Kenya Farmers Association director.

“If the government does not allocate more maize under supplementary budget, middlemen will cash on the desperation of the farmers,” he said.