The public expectation for drastic reduction of maize and wheat prices will take longer to be realized. Notwithstanding the Government's intervention to zero rate maize and wheat several realities must accompany the success of this strategy.
Diamond Lalji, chairman, Cereal Miller Association (CMA) said removal of duty on the maize will ensure food security in the country and price stability but no drastic cut down of retail prices; while the removal of 10 percent duty on wheat will enable the millers to reduce the prices as soon as the first vessel of duty free arrives in the country.
Lalji said it will take 45 to 60 days for the duty free vessel to dock at Mombasa and the 26 member millers in the country each with different maize and wheat stock to be sold at the current prices complicates drastic price cut down.
He said in a press conference that the deterioration of the the Kenya Shilling against the dollar from the inflation of 10 percent defeats the good intention of the Government. Pointing out that if the US $ was exchanging at Sh 70 the 2 kilogramme (Kg) maize flour packet will sell at Sh 81against the current price of Sh 96; while that of wheat will be selling at Sh 107 against Sh 129. It's at US$ 65 that maize flour will sell at Sh 65 and that of wheat at Sh 101.
The CMA chairman said with the crisis at hand with regard to high prices of fuel and food prices, they are appealing to the Governor of the Central Bank of Kenya (CBK) to take intervention measures in the forex market to reign in speculation. “If CBK will directly offload 500 million dollars to the market their prices will drastically come down,” he said.
He further recounted that international prices of wheat are high from persistent drought that has been ravaging world wheat growers coupled with East Africa Community regulations on such commodities.
However, he said if the minister of agriculture's confirmation of 24 million bags of maize in the country were accessed by the millers the prices will go down, at once. “We hope that the decision to import duty free maize will encourage farmers and traders who are holding their maize to release it and end uncertainty and speculation in the market.”
Nevertheless, Kenya has been experiencing a huge deficit of maize at a tune of 14 percent, 12 million bags as the country produces 24 million bags, annually. In wheat farming, the country is doing poorly as it produces 300,000 bags thus forced to import 900,000 to meet the country's need of 1.2 million bags annually.
Lalji noted the prices of imported maize and local maize in Mombasa are almost the same. When a bag of imported duty free maize will land in Mombasa at Sh 3050 per bag whereas a 90 kg bag of local maize lands in Mombasa will cost Sh 3000 per bag, the local farmers will not be adversely affected.
While urging the Government to immediately gazette the duty free importation, he said: Importation of duty free maize will stabilize prices in the country, as adequate adequate supplies will be available in the region. Further subsequent importation of maize will reduce the demand for local maize.
On the removal of 10 percent on the wheat, he said, it will allow a reduction of prices from the average retail market rate of Sh 292 per 2 Kg prices to remain the same so long as the shilling does not weaken further.
“Following the reduction of the duty from 35 percent to 10 percent in last year's budget and subsequent hue and cry of the Kenyans wheat farmers, millers were asked to ensure that they uplifted all locally grown wheat at a price agreed to by the various stakeholders.”
Dr Simion Gechuki, Head Kenya Agricultural Research Institute (KARI), Biotechnology Center who accompanied the him said food production is high in Kenya due to higher cost of production compared to other countries. Growing of Genetically Modified Food (GMO) is the way to go, as part of the long term solution of food insecurity in the county.
Gechuki said, USA, Europe and South Africa have regularly tested the GMO for 15 years and have proved them to be safe. He explained that there should be no fear from importation of GMO food stuffs giving an example of South Africa which 80 percent of its is GMO.
He said that among Kenya's maize importers only Malawi and Zambia does not grow GMO foods. He added that 29 countries globally are growing GMO food while 59 countries are the consumers which is more than 50 percent of the world population
Kenya is yet to have a GMO policy in place. Gechuki called upon the Ministry of Higher Education to fast track the policy to have rules and regulations on GMO in the country.
On the fear of importing toxic food, aflotoxin, the KEMRI researcher said Kenya has the necessary institutions with well equipped laboratories to ensure that food that is not worth for human consumption can not find its way to the market: Kenya Plant Health Inspectorate Service (KEPHIS) and Kenya Bureau of Standards (KEBS) carry all kinds of tests.
Aflotoxin is not only a problem of imported maize rather even local maize that is not well dried and stored to the required standard, he said.
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