Kenyans pay double for maize

Written on December 15, 2009 – 11:34 pm | by Admin

Kenyans are paying double the price for maize compared to international prices.

And half of the income by sellers is going to 2 per cent of the large and influential maize farmers.

According to the Kenya Economic Update report released by World Bank on Thursday, the high maize price policy is partly responsible for poverty, for it removes resources from the poor to the rich.

“At the end of 2009, the price of maize, Kenya’s main staple food, was double international prices and most of the year, it was substantially higher than Uganda and Tanzania,” the report says.

Influential

Although global food prices were generally high, the situation was worse in the country.

“In the domestic market, less than 2 per cent of Kenyan farmers — mostly large and influential producers — are benefiting from current extraordinary high food prices,” the World Bank says.

The bank adds that the prices of maize have doubled per metric tonne from $185 in April 2007 to $356 in June 2007 per tonne, further increasing to $404 in May 2009.

The report traces the food deficit in the country to the 2008 political crisis, which disrupted production, leading to a 20 per cent reduction in area under crop, particularly in Rift Valley, while the drought exacerbated the situation.

“Furthermore, the interventions of the National Cereals and Produce Board (NCPB) have led to additional price increases, which are detrimental to a majority of Kenyans,” the report says.

The public lost about Sh23.4 billion in subsidies and taxes that would have been collected after NCPB officials sold maize to brokers instead of the millers, in a plan that was meant to provide cheaper maize meal to the poor.

The government stopped the programme and promised an alternative, which has not happened.

The report says that as a result of these factors, the poor in urban and rural areas are paying a heavy price for the foodstuffs.

According to the bank, their assessment on poverty, indicated that the poor spend 70 per cent on food and in the extreme there are those who use up to 77 per cent of their income on food alone.

“These inequities point to an urgent need to review the agricultural trade policy and examine the role of NCPB.”

1 | 2 Next Page »

Perfect Business!