Millers will pay between Sh4,650 and Sh4,750 for a 90-kilogramme bag of wheat after the government announced negotiated minimum prices for the 2025/2026 season.
At the same time, sugarcane farmers have a reason to smile after the government increased minimum prices from Sh5,500 per tonne of cane to Sh5,750 effective July 21.
In a press release on Friday, Agriculture and Food Authority (AFA) Director General Bruno Linyiru said negotiations by Cereal Millers Association, Cereal Growers Association and the government had settled on Sh4750 for grade one wheat and Sh4,650 for grade two.
In the 2024/2025 season, the minimum wheat price for Grade One was set at Sh5,300 and Sh5,200 for Grade Two.
“Minimum prices have been determined based on a study of the average cost of production, an established pricing formula and negotiations. The goal is to offer farmers fair compensation and encourage increased production. After stakeholder consultations, the following minimum prices are applicable at traditional wheat buying centers.” Dr Linyiru said.
Early this year, wheat farmers protested over uncontrolled cheap imports that were flooding the market at the expense of local produce.
They accused millers of ignoring the government backed wheat purchase programme which is designed to support local producers.
Millers were said to be offering as low as Sh3,800 per bag against a minimum price of Sh5,200 for grade two.
In a bid to ensure adherence to the latest prices, Dr Linyiru states that aggregators will be vetted afresh and registered as marketing agents.
“A handling fee of Sh220 per 90 Kg bag to cater for weighing, offloading and testing will be paid to aggregators, shared equally between the farmer and the miller.” He stated.
All millers who intend to benefit from the Wheat Purchase Programme, which attracts a reduced import duty, must purchase locally produced wheat.
AFA says millers have been granted wheat import approvals based on performance in previous local wheat purchase commitment and previous import quota utilisation.
In December last year, the ministry of agriculture was forced to ban importation of wheat until millers mopped up local produce.
On Sugarcane, Agriculture Principal Secretary Kipronoh Ronoh, the new prices set by the Sugarcane Pricing Committee considered the prevailing ex-factory sugar process over the past three months.
