CS Felix Koskei defends State on maize price calculations

NAIROBI: Two days after President Uhuru Kenyatta ordered the National Cereals and Produce Board to reopen its depots to begin buying maize from farmers, the Government announced the prices.

The board will now buy a 90kg bag at Sh2,200 as from today.

Announcing the new prices at his Kilimo House office in Upper hill, Agriculture Cabinet Secretary Felix Koskei said they were arrived at after the ministry's and board official's study of the local market.

Koskei said over and above the prices, farmers would also benefit from a rebate of Sh500 per bag as compensation for challenges incurred, diseases, crop failure and impact of erratic weather.

"The prices are based on the current market forces and will equally benefit the farmers as it is above the current cost of production," said Koskei.

The price is about 27 per cent less compared to what the farmers sold at last year.

The CS said farmers who would be engaged by the Government would be vetted through documents the Government has in its custody. "We will give the farmers first priority to save them from further financial woes," he added.

Defending the Government over accusations of setting prices rather than allowing the market forces to determine the same, Koskei said their role is to ensure the small scale farmers are shielded against exploitation by middlemen and other value players.

"With a farm gate price of Sh2,500, the gross margin calculations indicate the price of producing a bag using commercial price of fertiliser are Sh1,610, Sh1,915 and Sh3,240 for high, medium and low production efficiency level respectively," he said.

He said in 2014, the long rain maize production is estimated at 34.7 million bags compared to 35.8 million bags produced during long rains of 2013.