The Cabinet is split over the pricing of maize to be bought from farmers as the threat of hunger due to the La Nina phenomenon looms. There was a bitter exchange in Cabinet meeting on Thursday, after members disagreed over the pricing of maize per 90kg-bag, leaving Agriculture Minister Sally Kosgei in a foul mood. Cabinet meetings are not open to the Press, but sources told The Standard On Saturday Dr Kosgei pushed to have the National Cereals and Produce Board (NCPB) buy maize from farmers at Sh1, 800 per bag. She clashed with her colleagues, led by Special Programmes Minister Esther Murugi, who put the ceiling of the purchase price at Sh1,000 per 90kg-bag. The Strategic Grain Reserve (SGR), fall under Special Programmes. Mrs Murugi is reported to have said her ministry could buy maize at Sh1,000, a move that infuriated other ministers from maize growing areas, including Kosgei. Murugi is said to have increased her price to Sh1,500 after a heated exchange, and told the meeting it was all her ministry could afford.  But Kosgei insisted that the Government should buy maize at Sh1,800 to cushion farmers against loses, and also get enough grain needed for the reserve. Currently, the country has only 3.1 million bags in the SGR, far short of the recommended eight million bags. The NCPB Public Relations Manager Evans Wasike told The Standard On Saturday yesterday that the Government had released Sh500 million for the purchase of maize. The Government will, however, change the purchase system this year, to warehousing. Farmers will be expected to deliver their maize to any NCPB certified warehouse and wait for payment. Those who deliver their maize first will be given priority at the time of payment when the Government will have released funds. The crisis comes at a time the maize harvesting season has just kicked off in grain basket areas of Trans Nzoia, Lugari, Bungoma, Uasin Gishu, Nandi, Keiyo, Kakamega, Kapenguria, and Narok causing a glut that has depressed prices to as low as Sh700 per bag. Many farmers are still holding last year’s crop.

International prices

It was reported this week that farmers are losing out on the international maize price offer that has come at a time local producers are taking in huge losses owing to the collapse of local prices. The Government banned maize exports early last year when the country experienced the most severe drought in areas like Uasin Gishu. Sources said Kosgey stuck to her guns and vowed not to budge, saying the pricing should be fixed at Sh1,800. The issue was deferred and the Cabinet mandated the Agriculture Minister to prepare a report on the matter for debate in the next meeting. "She is, however, mandated to set the record straight after consultation," another Cabinet minister who preferred anonymity disclosed. Wasike said NCPB has the capacity to buy as many as 20 million bags if money was made available, although it has been taking slightly over 15 million bags annually. "Apart from the threat of La Nina, we will have a good harvest that is above average this year," said Wasike. Raila convened the National Drought Committee on October 4, to evaluate and mitigate the national food crisis.

THE STANDARD
Published on 15/10/2010
By Martin Mutua and Biketi Kikechi