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Maize farmers say flour subsidy to destabilise market
A maize trader in Kisii County. FILE PHOTO | NMG
What you need to know:
- Maize farmers claim the subsidy has triggered a dip in farm-gate prices of the commodity to Sh2, 300 per 90-kilogrammes, providing a leeway for brokers to profiteer by mopping stocks for sale to NCPB at higher prices yet farmers faced losses due to high cost of production.
- Under the subsidy, a two-kilogramme packet retails at Sh90 while the one-kilogramme one sells for Sh47.
- The State last week announced that subsidy programme would carry on beyond September as earlier planned following heavy rains that have affected harvesting in the main north Rift growing areas.
Growers have criticised the extension of a government subsidy on maize flour, saying the decision is likely to destabilise the market.
The Cereal Growers Association (CGA) claimed the subsidy scheme has triggered a dip in farm-gate prices of the commodity to Sh2, 300 per 90-kilogrammes, providing a leeway for brokers to profiteer by mopping stocks for sale to National Cereal and Produce Board (NCPB) at higher prices yet farmers faced losses due to high cost of production.
