Blow for farmers as maize price declines by Sh400

Maize farmers have suffered a blow after prices dropped by Sh400 to Sh2,800 for a 90-kilo bag even as they battle rising costs of inputs.

This follows the scaling down of the purchase of the grains by millers to cut down on costs due to declining demand for processed flour.

The arrival of cheap produce from East Africa Community (EAC) member States-Uganda and Tanzania has also contributed to the decline in maize prices to the relief of consumers who will pay less for the stable product.

“What we are witnessing is that most millers, large and small, have cut purchases due to a decline in demand for flour caused by low purchasing power among consumers,” said Grain Belt Millers Association chairman Kipng’etich Mutai.

Millers have warned of further decline in maize prices following the harvest of short-term crops and the arrival of cheap produce to EAC member States.

“Some of the consumers have opted for posho mill flour, which has impacted negatively on our operations, pushing some millers out of the market,” said Mr Mutai.

Source: Business Daily