CAEE 5131 - Agricultural Marketing and Price Analysis
Article 2 -House team to determine price of maize
The issue of the price the Government will buy maize for the strategic grain reserves has been referred to the Parliamentary Committee on Agriculture after it emerged there were two sets of prices.
Cherangany MP Joshua Kuttuny claimed there was a circular from the Agriculture Ministry putting the price at Sh1,500 per 90 kg bag, even as Agriculture Minister Sally Kosgei and Assistant Minister Kareke Mbiuki maintained the official price is Sh1,800 per 90kg bag.
Dr Kosgei told the House that it is true farmers have been selling maize at Sh1,500 but this has been reviewed upwards to Sh1,800 and that the ministry is awaiting documentation on the reviewed price.
"The price is Sh1,800 and the purchaser is the Ministry of Special Programmes," said Kosgei. But Kuttuny disputed this, saying the price he is aware of is Sh1,500. At this point, Deputy Speaker Farah Maalim referred the matter to the Committee. The Government has allocated Sh1 billion to buy maize for the Strategic Grain Reserve. Treasury has authorised the release of Sh500 million to purchase eight million bags. But Eldama Ravine MP Moses Lessonet protested, saying it was unfair for the Government not to mop up the 40 million bags harvested. Kuttuny, Saboti MP Eugene Wamalwa and Tharaka MP Peter Mwiru, wondered why maize price had to be readjusted every now and then, to which Mr Mbiuki said this depends on the dictates of the market. Nominated MP Musikari Kombo and Nyaribari Masaba MP Walter Nyambati accused the Government of neglecting maize farmers.
Published on 28/10/2010
By Peter Opiyo
By Peter Opiyo
Licensed under the Creative Commons Attribution Share Alike 3.0 License
This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation