BY Jackson Okoth
Private millers operating within the low-income areas of Nairobi have appealed to the Government to consider selling them grain at subsidised prices.
This is to enable them compete with the Sh52 per 2Kg Government branded maize meal, currently distributed by National Cereals and Produce Board (NCPB).
" We have been denied the opportunity to purchase maize from the cereals board.
This is unfair to other players in the milling business," Michael Onyuowre, a miller told The Standard on Monday.
The tribulations of the posho millers stem from the fact that they cannot compete with the subsidised flour sold by NCPB stockists.
" Investors in the small and medium milling industry would like to appeal to the Agriculture ministry and the Prime Minister’s office to apply fair trade practice for all players in the milling business, says Onyuowre. While the large cereal manufacturers are purchasing maize from the NCPB at Sh1750 per 90 kg bag, posho millers get their supplies from the open market at a price of Sh2650 per 90 kg bag.
"We sell the 2kg tin of maize at between Sh70-80, making a margin of Sh1.25 per tin after milling. We cannot therefore compete and may be forced to shut down", warns Onyuowre.
Since the subsidised flour hit the market, consumers have cut back on supermarket purchases and flour from private posho millers, in favour of the cheaper flour.
Investors
" In the past, I used to mill an average of 10 bags per day. This has now reduced to two bags, including the Sunday peak period, said Onyuowre.
Posho millers in Mathare, Kibera, Kariobangi and Eastlands are warning that they may closed down due to unfair competition.
" We pay taxes and are investors like any other groups. We should therefore be protected", said Onyuowre.
A move by the Government to intervene in the cereals market has been necessitated by escalation in maize flour prices in recent weeks.
Analysts attribute the market distortation in the maize sector to speculative activities, and a refusal by farmers to sell to NCPB due to low prices.
Concerns had been raised over use of the subsidised flour by unsrupulous traders to rip off consumers.Posho millers argue that as local investors, they pay taxes and therefore deserve fair treatment to safeguard their capital and provide employmnent.NCPB has been urged to allow posho millers in the ditribution of flour due to their wider grassroots network.
Supply constraints in the grain sector are expected to ease once maize from South Africa is offloaded at the Mombasa port.
Operational problems at the Grain Bulk Ltd have disrupted the maize supply.
