Maize shortage sparks fears of high flour prices

The Cereal Millers Association (CMA) has warned that the low level of maize supply could see maize flour prices increase further.

According to the association’s chairman Nick Hutchinson, declining maize supply and expensive imports from neighboring countries had made operating costs go up.

From an average of Sh90 in February, the price of a 2 kilogram packet of flour has shot up to an average of Sh110.

“The Tanzanian maize has just started to come in to the market and I just want to say that we don’t bring that maize in, the traders do. We see a tightness of supply and I don’t know where prices are going to end up,” Mr Hutchison said.

Millers are currently buying a 90 kilogram bag of maize at between Sh2,650 and Sh2,750 with prices steadily rising.

Last year the ministry of agriculture brokered a deal between millers and the National Produce and Cereal Board (NCPB) to access grains held in the strategic grain reserves.

However, Hutchison says the association was unable to buy the 600,000 bags of maize from NCPB since it contained mainly grade 3 and 4 which is not fit for human consumption.

“The grains are shriveled because it’s been stored so you can’t use it for human food,” he said.

The cereal millers association has also taken issue with retail pricing for flour. From selling to distributors and retailers at an average of Sh95, consumers end up paying more at the till.

The government estimates that farmers held 10 million bags of maize by the end of April, a stock that would last up to early next month. Farmers and traders have however been seeking markets that offer better prices like Tanzania.

The next harvest from the south rift region is expected in August signaling a continued rise in prices.

Report by Beatrice Eghwa

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