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PUBLISHED ON November 13th, 2017

Collect your maize from port, processors now told

Grain handlers have asked millers to collect subsidised maize from Mombasa port and forestall a looming shortage.

Grain Bulk Handlers Ltd (GBHL) on Sunday said more than 20,000 tonnes of maize was at the port awaiting collection by processors.

The government allowed importation of duty-free maize on May 4 as drought ravaged many parts of the country.

The window was to expire on July 31 but was extended to September 30.

SHIP

Millers on Friday said delays at the port had resulted in maize shortage and warned that it would hamper their efforts to process the Sh90 per 2kg-pack subsidised flour.

However, GBHL terminal manager Michael Mwakamba asked the companies to get their stock.

“There were delays in offloading cargo because of heavy rains but operations are back to normal. We are offloading at least 14,000 tonnes of grains daily, 6,000 of them maize,” he said as 42,000 tonnes were being unloaded from a ship.

“We have witnessed a drop in off-take of the maize as millers concentrate on wheat. In total, there are about 135,000 tonnes of maize and wheat in our silos awaiting collection.”

He said whereas at least 350 trucks were required to meet the demand of packaging daily, transporters were sending only 200.

The official said priority was on offloading maize to clear a backlog of at least 160,000 tonnes in 20 days.

Due to the anxiety associated with the unpredictable political climate in the country, transporters scaled down their fleets, fearing their vehicles would be targets of attacks during demonstrations, former Kenya Transporters Association chief executive Alfayo Otuke said in an earlier interview.

SUBSIDY

According to data from GBHL, the terminal has handled 2.6 million tonnes of grain since January, up from 1.8 million tonnes in the same period in 2016.

“Our capacity is five million tonnes after the terminal was upgraded from the initial capacity of three million,” Mr Mwakamba said, adding that grains handled at the port could reach three million tonnes by December.

At the same time, Migori residents  have asked the government to extend  the maize flour subsidy period.

Many say the political situation may lead to a sharp rice in food prices.

“Subsidising the flour should not stop because most Kenyans rely on it,” said Mr Justus Oketch, a jua kali artisan.

His sentiments were echoed by Mr Edward Onyango, a handcart operator.

“This  is not the right time to phase out the subsidy. Kenyans should continue accessing the affordable flour until next year,” he said.

The cost of flour is expected to rise following the end of the import subsidy and the government setting the price at which it would buy the grain from Kenyan farmers.

Source: Daily Nation

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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