A major clash between Agriculture Cabinet Secretary Mutahi Kagwe and miraa exporters is looming over control of farm gate prices after the CS vowed to revoke licenses in two weeks.
While the ministry has doubled prices for the produce, the buyers have dismissed the rates as political and vowed not to implement them.
In mid-February this year, CS Kagwe issued a notice setting the price for a kilogram of Grade one miraa at Sh1,300 up from Sh700 while Grade two would sell at Sh700.
A kilogram of Allele variety was capped at Sh1,000 up from Sh500.
However, Igembe Miraa Farmers and Pluckers Welfare Association patron Mr Adamson Muriki says the various grades are selling at Sh300, Sh250 and Sh150 respectively.
At best, the traders are offering up to Sh500 per kilo of grade one.
Last Friday, Mr Kagwe gave miraa exporters a two-week ultimatum to comply with the set prices or lose their licences.
Speaking during a farmers’ day at Mikinduri in Meru County, Mr Kagwe said the prices were arrived at after negotiations with the traders.
He expressed concern that the buyers were being rude to farmers who demand better prices for their produce.
“We had a meeting with the buyers and reached an agreement that they cannot buy miraa at Sh200 in Meru and sell for Sh7,000 in Somalia. This is total contempt for farmers. If transport costs are the problem, we can deliver the produce by road. They must pay the farmer the price we agreed on,” CS Kagwe said.
“If you can't buy at the price we have set, go buy something else. As far as miraa is concerned, you will buy at the price we agreed. Otherwise, AFA will withdraw the license. They have two weeks to comply,” he added.
Mr Kagwe said once the licences are cancelled, traders will be required to commit to buying miraa at the minimum price set by the government.
However, Nyambene Miraa Trade Association (Nyamita) Spokesman Kimathi Munjuri termed Mr Kagwe’s directives as an exercise in futility.
Miraa farmers in Meru urge President Ruto to end cartel-like behaviour at JKIA
“The CS has no capacity or reason to revoke licences because pricing is not one of the conditions for licensing. The Crops Act 2013, the miraa regulations as well as the terms and conditions provided in the license are clear. What law will the CS rely on to cancel the licences?” Mr Munjuri posed.
“Why is the CS avoiding the issue of the cartel that collects millions at the airport? The AFA must rise to the occasion and be in charge of miraa trade,” Mr Munjuri said.
Miraa businessman Mohamed Quresh said it is difficult to control prices at the expense of market forces, even as it emerged that Mr Kagwe may have jumped the gun when he announced the new prices before making a deal with the real exporters.
According to Mr Muriki, the Farmers and Pluckers Welfare Association patron, the meeting that happened involved the Agriculture and Food Authority, farmer representatives and representatives of the exporters. The pricing committee chair tabled prices which he said were proposed by the exporters.
“We agreed that we have another meeting with the six licensed exporters in person before reaching a final agreement. However, we were surprised when the CS announced the prices on a Saturday,” Mr Muriki said.
He says the government has ignored proposals to open the border with Somalia and enforce sale of miraa based on a standard kilo.
“CS Kagwe’s directives remain mare political statements which cannot be honored. There is no mechanism for implementing,” he said.
Farmers remain on the edge despite President William Ruto’s assurance that he had already engaged the President of Somalia, Somaliland and Jubaland to address the market challenges.
“The cartels who are in the miraa business have three options. They have the option of stopping fleecing the farmer, going to jail or being eliminated. It is our intention to ensure miraa farmers earn higher prices like those in tea, coffee and sugar,” President Ruto said during his recent tour of the Mt Kenya region.
Deputy President Kithure Kindiki also assured miraa farmers that the government is keen on enforcing the prices announced by CS Kagwe.
“The government is not incapacitated in enforcing its directives. Just like we eliminated the cartels in sugar, coffee and tea, I request the president to allow me to deal with the miraa cartel. I will not spare them,” Prof Kindiki said.
Mr Kagwe also challenged miraa farmers to diversify their agriculture by growing macadamia and avocado.
