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Home International Customs

Maize prices to increase as decrease imports

byCT Report
11/12/2015
in International Customs, Kenya
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NAIROBI: The cost of Unga is likely to increase following decreased maize imports from neighbouring countries.

Large volumes of imports from Uganda two months ago had stabilised maize prices in the country. Maize prices in Uganda are now almost at par as those in Kenya, leading to lower imports. Uganda has recorded a slight drop in maize production this year. Maize imports from Tanzania have also reduced.

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“The imports have been a major cause of low prices of maize in our markets especially within Western Kenya but with higher prices in Uganda, the influx has declined raising the possibility of higher prices,” said George Idewa from the East African Grain Council.

A 90-kg bag of maize currently costs between Sh2,000 and Sh2,300 in Eldoret, Kitale and Bungoma. The price was however lower before the National Cereals and Produce Board began buying maize from farmers at Sh2,300 per bag.

About two million bags of maize had been imported from Uganda into the local markets by last month. The Kenya Farmers Association and Kenya National Farmers Union are lobbying the NCPB to increase maize prices to about Sh3,000 per bag.

“We still demand that the price should be raised but at the same time we ask farmers not to sell their produce at throw away prices as there is likely to be an increase in prices,” said KFA director Kipkorir Menjo.

He said the influx of maize into local markets was not as high as during the last two years. Ministry of Agriculture estimates maize production will more than 41 million bags this year although El Nino rains in some areas may affect the harvest.

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