State will no longer set maize prices, says Agriculture CS

The Agriculture, Livestock, Fisheries and Co-operatives Cabinet Secretary Peter Munya has announced that the government will no longer directly buy, distribute, sell or set prices of maize.

Mr. Munya also added that the ministry would no longer buy, distribute or set prices of fertilizer, seeds or any other farm inputs.

This means that the private sector has been provided with a conducive environment for players in the industry to trade fairly.

In the new reforms, the National Cereals and Produce Board (NCPB) will be restructured to create a commercial arm that will compete for opportunities on value and price alongside other market players named the NCPB Trading Division (NTD).

“Going forward, the government will focus on its key role – that of creating an enabling environment for producers and traders to make and execute commercial decisions while ensuring that commercial interests, especially on imports, do not disadvantage local producers and consumers,” said Mr. Munya on Tuesday 20, 2020.

“NTD will … (cluster) registered small-medium holder farmers and agro-dealers around aggregation centers (co-operatives or warehouses) for storage, bulk inputs sourcing, marketing and extension support.”

The reforms are part of the ministry’s Agriculture Sector Transformation and Growth Strategy 2019-2029, is among measures taken by the government to boost food security in the country, albeit indirectly.

The strategy also targets to lower post-harvest losses from 20 percent to 10 percent, while increasing benefits from value chain efficiency by at least 50 percent. This will be achieved through improved storage, value addition and trade.

Previously, the government has been buying maize from farmers at prices higher than the market rate and selling the grain at lower prices during lean times.