Maize Shortage Forces 10 Millers to Close; Unga Prices Set to Soar
Due to a severe shortage of maize and non-payment for maize delivered under the subsidy program, approximately ten small-scale millers have completely ceased operations.
According to the United Grain Millers Association, almost all small-scale millers have reduced their operations as a result of the current situation.
Small and medium-sized millers in the country are struggling for survival, causing millers to anticipate a rise in the price of maize flour if the current situation continues.
During the annual millers’ conference in Nairobi, United Grain Millers Association (UGMA) Chairman Ken Nyaga stated that the 200 members’ operations have been crippled by a grain shortage caused by a lack of purchasing power.
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“I have approximately ten people who have slowed down because they cannot feed their machines with that maize,” Nyaga said.
The delay in payment for maize delivered under the subsidy program between July 21 and August 17 of last year has also contributed to their difficulties. The government owes millers, both large and small, approximately Ksh 3 billion. Small and medium-sized millers are requesting over 300 million Kenyan Shillings to continue operations.
“Most millers were operating on bank facilities, I know some have been auctioned, others have slowed operations because they cannot buy maize….so we are looking at a very difficult time when we don’t have money to purchase because it is owned by the same government that expects us to buy and reduce the price of flour,” Nyaga added.
The market price for a 90-kilogram bag of maize has increased from Ksh. 4,500 two months ago to an average of Ksh.
Nyaga stated, “Find a way to reduce maize prices because as the price falls, consumers benefit….something must be done to find ways for us to continue our business.”
The government says it is in the process of importing 4 million bags of duty-free maize this month, with the first shipment expected next week, as part of efforts to reduce food prices.
