Currently, exporters have to pay a compulsory ‘commission’ of USD6.3 per kilo of Miraa which is equivalent to Sh82, 000 per bag before the cargo leaves for Somalia.”
“When you include charges such as cess, transport, taxes and cargo handling, the costs add up to USD27 (Sh3,550) per kilo of Miraa."
Miraa farmers and traders in Meru are now calling on the government to fast-track the revitalisation of the crop as prices continue to plummet. Over the last three months, miraa farm gate prices have nose-dived from Sh50,000 per 100kg bag to Sh15,000 – sparking an outcry from farmers. Traders are now blaming the price decline on an invasion by a cartel that demands USD6.3 (Sh828) per kilo and the shrinking local market due to competition from Muguka, a khat variety grown mostly in Embu. The price drop was confirmed by Agriculture Cabinet Secretary Mithika Linturi, also a Miraa farmer, in a local TV interview on Sunday. He said a buyer offered Sh50,000 for Miraa, which he had previously sold at Sh380,000. According to the Nyambene Miraa Trade Association (Nyamita), many khat chewers are opting for cheaper alternatives, leading to low demand amid a high supply. Exporters are also said to have lowered farm gate prices to cover up for the hefty "cartel commission" demanded before a cargo plane takes off.
Residents of Thunu village, Igembe South sub-county in Meru county prepare khat for sale. Over the last three months, miraa farm gate prices have nose-dived from Sh50,000 per 100kg bag to Sh15,000 – sparking an outcry from farmers.
