Posted on December, 3, 2018 at 11:10 am
Fred Aminga
The State has been asked to consider procuring for the Strategic Grain Reserve (SGR) through an open tender system.
Setting reserve prices so that National Cereals and Produce Board (NCPB) pays for the grain, has disrupted the open market system, undermining food security and propagating rural poverty, say stakeholders in the grain value chain.
Speaking during a forum on challenges facing the grain sector where the National Assembly Parliamentary Committee met with Eastern Africa Grain Council ahead of the third reading of Warehouse Receipt System (WRS) Bill at a Nairobi hotel, EAGC executive director Gerald Masila said the WRS can facilitate trade and enhance market efficiency by creating liquidity for agricultural commodities and improved access to credit.
Short-term credit
He said this move allows farmers to avoid selling immediately after harvest, when prices are depressed. Through the WRS, farmers will be able to deposit their commodities in a certified warehouse, which will issue them with a receipt that serves as document of title. The document will in turn be used as collateral for short term credit.
Disjointed government policies such as setting producer price for maize, fertiliser subsidy for some and taxing of agricultural inputs – such as pesticides and machinery – had made Kenya, inefficient, a high cost food producer in relation to her neighbours hence undermining national food security contrary to the Big Four agenda.
Labour costs
An estimated 48 million bags of maize is still with farmers who are unable to sell from previous harvest as current harvesting season gets underway.
Other factors that have contributed to low production of the grains, are agricultural land sub-divisions to an economical levels in key growing areas, high input and labour costs, dysfunctional extension services and poor adoption of appropriate technologies in modern agriculture.
Busia Woman Rep and Agricultural Committee member Florence Mutua urged EAGC to work with Members of Parliament to establish certified warehouses at constituency level to address post-harvest loses, boost production and enhance rural economy.
To address post harvest losses estimated at 19.2 million bags of national grain harvest, EAGC is promoting use of hermetic bags, plastic and metallic silos at household level.
Source: MediaMax Network