The standoff pitting wheat farmers and millers in the country is set to come to an end after Agriculture CS Mutahi Kagwe brokered a truce between the two warring parties.
This follows a day-long meeting between stakeholders in the sub-sector and the millers.
Wheat farmers in Narok, Nakuru, Uasin Gishu and Timau have been up in arms over the poor prices paid by millers, despite the existence of a binding agreement between the two warring parties, and set prices for wheat.
In the resolution reached at Kilimo House Wednesday, CS Kagwe directed that the millers purchase all the locally grown wheat that has not been purchased, amounting to 400,000 bags.
Subsequently, the government, through the Agriculture and Food Authority (AFA) will release the C60 Import licenses for the 21 Millers under the Cereal Millers Association (CMA).
The Ministry says a total shipment of 260,000 bags imported by the millers is lying at the port of Mombasa, and attracting a demurrage fee of US $ 0.3 cents per ton per day.
A total of 1.3 million bags have been bought so far.
During the meeting, CS Kagwe urged farmers not to accept lower prices and instead sell their wheat at the set prices of Ksh. 5,300 per bag for Grade 1 wheat, and Ksh. 5,200 per bag for Grade 2.
A Wheat Sector Standing Committee composed of the Ministry, CMA, CGA, NCPB, AFA, County governments and farmers has also been formed to restore trust in the tripartite agreement signed in 2010 between the CMA and CGA, with the government being the guarantor, in order to have millers buy wheat at mutually agreed prices while at the same time protecting the interests of famers at all costs.
Key among the goals of the committee to be gazetted by the Ministry will be to halt the decline in local production, which has fallen to 8% of the annual consumption of 26 million bags.
It will also enforce compliance with the local wheat purchase program, which obliged Millers to purchase locally before they can qualify for the 10% duty remission scheme under the East African Community (EAC) rules, and get their import allocation quota.
In developing its terms of reference, the CS implored the committee to leverage on technology to curate reliable data, restore credibility, accountability and transparency in the sector, as this will lead to better incomes for farmers’ incomes, and achieve food and nutrition security.
Present at the meeting were Narok County Governor Patrick Ntutu, Senator Ledama ole Kina, National Assembly Deputy Speaker Gladys Boss, and Principal Secretary for the State Department for Agriculture Dr. Kipronoh Ronoh among other leaders.
Also present were representatives from Agriculture and Food Authority (AFA), the National Cereals Board (NCPB), the Cereal Growers Association (CGA), the Cereal Millers Association (CMA) and scores of farmers.
