Farmers demand Sh1.7b payment for maize supply

Business

By Vitalis Kimutai

Farmers in the North Rift have demanded the Government pays them Sh1.7 billion owed for the supply of maize to the National Cereals and Produce Board (NCPB).

The 300 farmers said the delay in paying them for supply of grains early this year was unwarranted and caused them financial hardships.

In a meeting in Eldoret Town chaired by Kenya Farmers Association (KFA) Director Kipkorir Menjoh, the farmers said creditors were already making demand notices for them to pay for supply of various goods and farm inputs.

"Some of us who have loans are unable to service them and we fear our property might be auctioned to recover the money," they said in a statement read by Mr Menjoh.

He added: "As if the non-payment to farmers by NCPB is not enough punishment, the Government has reduced price of maize from Sh2,300 to Sh1,500."

They said it was sad that instead of empowering them to produce more and boost food security, the Government was delaying their payments resulting in massive losses.

Lack of Government subsidised fertilisers in NCPB stores has continued to bite in the last two months resulting in stockists raising retail price to Sh2,700.

Exploitation by stockists

For a few months the Government has not imported fertilisers to cushion them against exploitation by stockists as happened last year when prices fell to Sh1,800 per 50kg bag.

They also criticised Finance Minister Uhuru Kenyatta for lowering tax on imported subsidised wheat, saying it would kill the local sector.

"Lowering of tax on imported wheat was the most unfortunate thing on the Budget read by the minister as it will disadvantage farmers," Menjoh said.

They said the cost of production had sharply risen due to increased prices of farm inputs, implements, and high maintenance cost.

"While production cost has risen, the market price per bag of wheat has dropped from Sh3,300 to Sh2,200 resulting in huge losses," they said.

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