Posted on January, 18, 2019 at 09:14 am
Winstone Chiseremi
United Grain Millers Association wants the Government to suspend planned sale of 1.7 million 90kg bags of maize to eight large-scale grain processors.
The association, which champions the interests of the so-called small millers, claims that the move by government to settle Sh2.3 billion owed to the eight millers by selling maize stored in National Cereals and Produce Board (NCPB) stores at Sh1, 600 per 90kg bag would adversely affect its members as they are buying the cereal from farmers at the recommended price of Sh2, 500.
On Tuesday, United Grain Millers Association (UGMA) Chairman Peter Kuguru said that if the deal goes through then the small-scale millers, who control 70 per cent of the market, might be forced to increase the price of the 2kg maize meal packet from Sh90 to Sh110 as they pass on the increased cost of buying maize to consumers.
“If the agreement is enforced it will upset market dynamics as some players will have an upper hand over others, currently farmers are selling maize to us at Sh2, 500 as recommended by the government up from Sh1, 600 and if the situation persists we will be forced to pass on the additional cost to consumers,” said Kuguru.
Last year, the Government imported five million bags for the subsidy programme from Mexico and other sources at Sh3, 600 a bag, which it sold to all millers at Sh 2, 300, an arrangement that helped to stabilise market prices leading to a 2kg flour packet retailing at Sh90.
Kuguru said that they have been struggling in vain to seek audience with the Agriculture cabinet secretary Mwangi Kiunjuri to present their grievances.
A senior officer at the Agriculture ministry confirmed that the Government has agreed with the eight large-scale millers to have them buy 1.7 million bags from the NCPB at Sh1,600 as part of recovering their debt.
Source: MediaMax Network