Grain traders to use cell phones and Internet

By Macharia Kamau

The country’s grain trade has moved to embrace technology with the launch of a facility enabling traders keep track of commodities in transit and trade online by posting offers and making bids online.

E-trade— which was launched over the weekend by the East African Grain Council (EAGC)— will allow traders make use of cell phones and the Internet to transact and it is expected to streamline trading and procurement of grain.

The electronic initiative is expected to take off once the food supply situation normalises.

Strong economy

"Although the country is facing a severe shortage of food stocks, we felt that this new facility will open the way for grain farmers to achieve better prices for their crops once the situation stabilises," Ms Constantine Kandie executive director EAGC said in Eldoret, where the facility was launched.

"E-trade is an electronic grain trading platform linking sellers and buyers of grain," she said, adding that the new facility will reduce transaction costs that have over the years been associated with low returns for the farmers.

The facility allows grain traders willing to sell their grain to post their offers while the buyers post bids.

Trading platform

"All the offers and bids are listed on the trading platform making all the deals transparent, which is not the case in other markets," she said.

The new facility will allow players in the grain trade business to track all the transactions and the location of the commodity.

The new system is also expected to strengthen trade linkages between small-scale traders and large enterprises, such as processors, government institutions and food aid agencies.

"We are expecting an increase in demand once the country’s food situation improves. We also see all the players involved benefiting from enhanced competitiveness," Kandie said.

Traders will have to operate an account with the EAGC and can also subscribe to short message services alerts that will regularly inform them when offers and bids are posted on hte platform.

"E-trade will also enable small-scale traders to access markets and increase trade," saod Kandie.