Agriculture CS Mutahi Kagwe met with stakeholders and millers in the wheat subsector to resolve a dispute between millers and wheat farmers. There have been demonstrations by farmers in Narok, Nakuru, Uasin Gishu and Timau over the poor prices paid by millers, despite a binding agreement between the two parties, and set wheat prices.
The millers were directed to purchase all the locally grown wheat that had not been purchased, amounting to 400,000 bags, after which the government, through the Agriculture and Food Authority (AFA), will release the C60 Import licenses for the twenty-one (21) Millers under the Cereal Millers Association (CMA).
260,000 bags of wheat imported by the millers are lying at the port of Mombasa attracting a demurrage fee of US$0.3 per ton per day. A total of 1.3 million bags have been bought so far.
The CS urged farmers to sell their wheat at the set price of Kshs. 5,300 per bag for Grade 1 wheat, and Kshs. 5,200 per bag for Grade 2, and not to accept lower prices. To restore trust in the tripartite agreement signed in 2010 between the CMA and CGA with the government as a guarantor, to have millers buy wheat at mutually agreed prices, protect the interests of farmers at all costs, a Wheat Sector Standing Committee composed of the Ministry, Cereal Millers Association (CMA), Cereal Growers Association (CGA), National Cereals and Produce Board (NCPB), Agriculture and Food Authority (AFA), County governments and farmers was formed. The Ministry will gazette the committee.
It was tasked to check the decline in local production, which has fallen to 8% of the annual consumption of 26 million bags. It will also enforce compliance with the local wheat purchase program which obliged millers to purchase locally before they could qualify for the 10% duty remission scheme under the East African Community (EAC) rules and get their import allocation quota.
In developing its terms of reference, the CS implored the committee to leverage technology to curate reliable data and restore credibility, accountability and transparency in the sector, as this will lead to better income for wheat farmers and achieve food and nutrition security.
Present in the meeting were Narok County Governor Patrick Ntutu, Senator Ledama ole Kina, National Assembly’s Deputy Speaker Gladys Boss, Agnes Pareiyo (Narok North), Silvester Ntutu (Narok South), the State Department for Agriculture PS Dr Kipronoh Ronoh and representatives from Agriculture and Food Authority (AFA) the National Cereals and Produce Board (NCPB), the Cereal Growers Association (CGA), the Cereal Millers Association (CMA) and scores of farmers.
