Maize Prices Rise Following Delays in The Release of Reserve Grains

Delays in the release of grains from the Strategic Food Reserve (SFR) aimed at boosting market supplies have resulted in the gradual rise in maize prices.

A 90-kilogramme bag is now retailing at Sh3,300. This is an increase from Sh3,000 as seen in the past three weeks following a government announcement that it would avail cheap maize to millers from the SFR.

“The price of maize has gone back to Sh3,300 after delays in releasing stocks from SFR as the supply of grain has dwindled in the market,” says United Millers Association chairperson Peter Kuguru.

Last month saw the Ministry of Agriculture announce that millers would receive three million bags of maize. This was to help lower the price of flour that currently goes for Sh120 per two-kilo packet which previously retailed at Sh85 at the beginning of this year.

The announcement prompted traders and farmers who had been hoarding their produce release it to the market, a move that lowered prices by increasing supply.

The delay in the release of reserve maize has come as a result of supremacy battles between the officials of the SFR oversight board and the Ministry of Agriculture. The two have been feuding over who is in charge of the maize, which has disrupted the initial plans.

Following a decision by the Ministry of Agriculture to transfer the function to the SFR, the agency’s oversight board last week arranged for a meeting with millers to set modalities for the release of the grain.

According to board chairman Noah Wekesa, the transfer agreement that the SFR would oversee the maize distribution to millers was reached last week after a meeting between the Agriculture PS Hamadi Boga and the oversight board.

“There are no differences now. We met with the PS and agreed on the way forward,” said Dr Wekesa.

The ministry sent a communication to millers that stated the transferring of the process that it had previously initiated to the SFR.

“Kindly be informed that the function of allocating and issuing of SFR maize to millers has been moved from the Ministry of Agriculture to Strategic Food Reserve Trust Fund Secretariat. I have therefore forwarded your allocation lists to SFR Fund manager for consideration and necessary action,” reads the communication to the millers.