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Wheat farmers to government, Kenyan millers: Cheap imports are killing us
Wheat farmers want the government to regulate wheat import volumes, arguing that uncontrolled cheap imports are flooding the market to the detriment of local farmers.
Members of the Cereal Growers Association (CGA) in Nakuru and Narok accused millers of prioritising cheaper imported wheat over locally produced grain, despite a government-backed programme designed to support local wheat farmers.
Mr Nickson Rono, a wheat farmer from Njoro sub-county in Nakuru noted that the government’s wheat purchase program aimed at reducing overreliance on imported wheat has been frustrated by millers who are failing to buy local wheat at agreed prices.
Under the programme, millers are allowed to import wheat at a lower duty rate of 10 percent instead of the 35 percent stipulated in the East African Community (EAC) Common External Tariff. This tax break saves millers approximately Sh20 billion annually.
However, in return, millers are required to buy locally produced wheat at a minimum price set through consultations between the CGA, the Cereal Millers Association and the government.
For the 2024/2025 season, the agreed minimum price for locally produced wheat is Sh5,300 per 90kg bag for Grade 1 wheat and Sh5,200 for Grade 2.
Farmers, however, say millers are ignoring these prices and instead offering as little as Sh3,800 per bag, an amount lower than the cost of production.
“This programme was designed to promote local wheat farming while ensuring fair prices for consumers. But millers continue to violate the agreement by prioritising imports, leaving Kenyan farmers struggling to sell their stock,” said Mr Rono.
Post-harvest losses
Ms Amina Mohammed, a wheat farmer from Njoro, decried the challenges farmers are facing saying that many have been unable to sell their produce since October last year. This has led to significant post-harvest losses and is delaying land preparation for the next planting season.
She noted that farmers in key wheat-producing regions including Narok, Eldoret, Meru and Laikipia are stuck with large wheat stocks due to reluctance by millers to buy at agreed prices.
“The millers refuse to buy their allocated quota of local wheat, despite having agreed to do so under the wheat purchase programme. This is a betrayal of the agreement,” said Ms Mohammed.
Reporting by Mercy Koskei, Tobias Meso and Francis Murethi