Millers divided over cost of ‘cheap’ unga
Workers packing maize flour at a milling company in this picture taken on May 17, 2017. The government owes small-scale millers Sh500 million.
Divisions have emerged among millers over landing prices of imported maize meant to bring down the cost of unga through duty free imports.
Members of the United Millers Association are split over the importation of a ‘huge’ consignment of maize from Common Market for East and Southern Africa (Comesa) to lower flour prices to Sh150 per a two-kilogramme packet, with a section of them taking issue with the government’s demand to have the commodity sell at Sh4,200 per 90-kilogramme bag despite high prices in the global market.
“We have imported a huge consignment of maize from Comesa that will land in the country in the next few weeks to cushion consumers against high cost of flour,” said Mr Ken Nyaga, chairman of the United Grain Millers Association.
Mr Nyaga remained non-committal on the Comesa states where the commodity is being sourced, and the landing prices, as consumers continue to endure the high-cost maize flour despite a promise by President William Ruto that cheap unga will hit shelves this week.
Mr Nyaga disclosed that the government owes small scale millers Sh500 million, making it difficult for them to access capital to import the grains.
“Most of our members are faced with financial challenges due to delays by the government in settling the Sh500 million debt. Some of them were also not issued with import permits,” said Mr Nyaga on phone.
Some millers are reluctant to import maize and are instead demanding payment of Sh2.6 billion subsidy arrears from last year. In most retail outlets, a two-kilogramme packet of maize flour is selling for between Sh182 to Sh230 depending on the brand. Two brands are however retailing at between Sh159 and Sh161.
A section of millers who are also members of United Grain Millers Association has dismissed the possibility of imported maize landing at Sh4,200 per a 90kilogram bag as demanded by the government.
“The maize flour can only be sold at Sh150 per two-kilogram me packet if it lands in the country at Sh4,700 per bag. The commodity is currently selling at above Sh5,400 in the regional and global market,” said a miller who requested not to be named.
Agriculture Cabinet Secretary Mithika Linturi has accused big millers of sabotaging the government’s effort to lower the price of unga. He said small millers are cooperating with the government in its quest to reduce the prices.
Mr Linturi did not name the big companies frustrating government efforts to have lower unga, only terming them as ‘cartels’.
According to the millers, harvesting of maize is ongoing in Tanzania, but the commodity contains high moisture content and is unsuitable for milling.
“We expect the maize form Tanzania to arrive at Sh5,700 per a 90-kilogram bag, and that is still high, to help lower the cost of flour,” a miller told the Saturday Nation.
Whereas the government wants the imported maize to sell at Sh4,200 per 90-kilogram bag, millers want the market forces of supply and demand to determine the prices.
