Low imports push maize prices in Kenya 10 pct up
Xinhua, June 6, 2016 Adjust font size:
Maize prices in Kenya have risen by 10 percent in the last month as imports of the staple from neighbouring countries dwindle.
Kenya mainly imports maize from Uganda and Tanzania but since the start of the year, imports into Kenya have been few.
Data from the East African Grain Council's Regional Agricultural Trade Intelligence Network (Ratin) showed Monday that traders were importing about 100 metric tonnes of maize into Kenya each day.
The imports mainly from Uganda through Busia and Lwakhakha border points sometimes have gone down to 10 metric tonnes, from close to 2,000 metric tonnes last year.
Imports help stabilize maize in Kenya, which, according to analysts, has a deficit of up to 20 million 90 kg bags.
The low imports, therefore, have seen maize supply in the Kenyan market drastically drop leading to the current price surge.
A 2 kg packet of maize meal in Kenya is currently being sold at between one U.S. dollars and 1.1 dollars, up from 0.9 dollars at the end of April.
Similarly, a 90 kg bag of the commodity is being sold at a high of 32 dollars, up from about 28 dollars in April and 22 dollars in January.
The cost of the commodity is higher in the coastal Mombasa city and Kisumu in western Kenya -- areas that mainly rely on food imports.
In Kisumu, a 90 kg bag of dry maize is going for 31 dollars while in Mombasa for 32 dollars and in Nairobi, 30 dollars.
According to analysts, the imports have declined because Uganda experienced drop in maize production last year.
"Maize production in Uganda went down last season due to heavy rains and dry spells in some areas," said Bernard Moina, an agricultural officer in Kitale, western Kenya.
Ministry of Agriculture data showed Kenya consumes up to four million 90 kg bags of maize every month, against a harvest of 35 million bags per season.
"Maize supply is dwindling fast, the reason prices are also going up faster because we millers can hardly get enough for processing," Cereal Millers Association chief executive Nick Hutchinson said in an interview last week.
Maize contributes significantly to the East African nation's inflation as it is consumed by nearly all the citizens.
Consumers are already feeling the pinch of the rising maize prices, with many now turning to alternatives like rice.
"I cannot continue eating corn meal every day during lunch and supper. My family of five consume a 2kg packet for the two meals. At 1 dollar per 2kg packet, it become expensive for us. I will use rice to fill the gap," said George Masinya, a secondary school teacher in Nairobi. Endit