Posted on September, 26, 2016 at 11:38 am
The price of a two kilogramme packet of maize flour has dropped by Sh2 on average despite a stable supply of maize in the country, a report from the Ministry of Agriculture indicates. The food security report for last month shows that the price of the staple has dropped from Sh106 in July to Sh104 last month, signifying a minimal decline on the cost.
“The food security situation in the country is stable. The current maize stocks stand at 9,622,300 bags,” says the report. According to the report there has been an improvement in stocks following crop harvesting in Coastal and Eastern Kenya.
The government had in July released a million bags of maize to tame the rising cost of flour but the impact is yet to be felt.
The report also indicates that the price of a 90 kilogramme bag of maize has dropped from Sh2,900 in July to Sh2,800 currently.
The millers have cited the high price of maize as the reason for expensive flour.
Kenya mainly depends on imports from Uganda and Tanzania to bridge a deficit of 20 million bags annually. However, farmers have complained of an influx of maize from Uganda which they say will hurt local prices.
Maize prices have a big effect on inflation in Kenya where it is the staple food and accounts for a significant share of poor households’ budgets.
The report shows that millers are holding 320,000 bags, which is lower than the 500,000 that they were in possession of in July.
The government has accused millers of manipulating flour prices, adding that the country has enough stocks to last for the next three months.
Maize farmers in the North Rift, the country’s bread basket, are staring at reduced yields this year after rains failed in the middle of applying top dressing fertiliser, affecting the crop’s performance and signalling low returns.
Source: Business Daily Africa