As farmers sell their maize ahead of the opening of the import window next month, traders and consumers are benefiting from the decrease in maize prices.
A 90kg bag of maize has decreased by at least Sh1,000, resulting in a slight decrease in flour prices from millers.
The cost of maize has gone from Sh5,800 to Sh4,800 as farmers sell thousands of bags, and the cost of flour has dropped from Sh2,080 to Sh1,950 per bale ex-factory.
“We have to sell the produce at the present competitive prices considering that the prices are likely to plunge once the imported cereals come into the market,” said James Kosgei from Sergoit, Uasin Gishu County.
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The decline in maize prices is a pain for farmers grappling with rising production costs. For instance, the Kenya Seed Company has increased the cost of maize seed, with a 25-kilogramme bag going for Sh4,700 up from Sh4,500.
“It is becoming increasingly difficult to break the vicious cycle of high production cost against declining market prices,” said Eliud Kibet from Kerita farm in Uasin Gishu.
The Ministry of Agriculture has allowed traders to import 900,000 tonnes of duty-free white maize and 600,000 tonnes of milled rice from next month up to August.