NCPB eyes Sh4.1b from State to purchase maize
National Cereals and Produce Board (NCPB) is banking on Sh4.1 billion from Treasury to resume purchase of maize from farmers.
The board buys maize and other grains such as rice and beans under its commercial wing for trading.
Managing director Joseph Kimote said purchase of maize for commercial trading stopped mid last month due to lack of funds and expected to resume once fresh injection of funds is received from the exchequer.
He said the Sh4.1 billion was part of expenditures factored in the supplementary budget recently approved by Parliament.
“We are hopeful that the money will be released soon and enable us to continue buying maize from the farmers,” said Kimote during a phone interview with Business Hub.
The move which comes amid an increase in the cost of maize flour on hoarding claims could gobble up excess maize and avail it to the market to ease pressure on consumers already affected by Covid-19 pandemic.
United Grain Millers Association (UGMA) chairman Ken Nyaga said farmers are hoarding maize thus contributing to increase in unga prices.
A 2kg packet of a good number of maize flour brands in the local supermarkets and estates is currently retailing at between Sh91 and Sh110 with millers warning the price might increase in the coming months.
Low availability
This Nyaga warned is likely to be dictated by two factors – low availability of stocks and high demand of the commodity.
Nyaga said there is little maize in the market and in some segments the commodity has high levels of aflatoxins, for example, in Eastern region and Nanyuki in Laikipia county.
“The poison level in counties of Makueni, Machakos, Kitui, Embu, Tharaka Nithi, Meru and Laikipia aflatoxin levels in maize is between 50 and 100 parts per billion (ppp),” he said in a previous interview.
Kimote said, the government paid NCPB Sh1.6 billion two months ago as part of the huge debt owed by its various agencies to buy maize.
“We allocated Sh1.2 billion from the money received to purchase maize from the farmers for commercial trading.
As at mid-March, we had purchased 729, 000 bags of 50kgs from farmers at Sh2,700 per bag thus exhausting the set said cash,” he added.
Kimote said the remainder of the cash was used for administration and other operations activities.
He said the ban on maize from Uganda and Tanzania by the government early this year due to high aflatoxin levels was beneficial to local farmers’ prices.
Currently, a 90 kg bag of white maize retails at between Sh2,900 and Sh3,000 compared to between Sh2,600 and Sh2,700 early this month.
A bale of maize flour ranged between Sh1,100 and Sh1,250 at the end of last week.
Millers and government last week differed over the availability of maize stock in the country, with the former saying farmers are hoarding the commodity protecting low prices in the market.
However, Agriculture and Food Authority said the country has enough maize to feed the population up to the end of next month.
