Linturi threatens to cancel licences in standoff with millers
By Nicholas.Waitathu, April 26, 2023
The government has threatened to revoke duty-free licences issued to maize millers and grain handlers to import maize to stabilise soaring prices and boost supply.
Agriculture and Livestock Development Cabinet Secretary Mithika Linturi (pictured) warned that failure by value chains to demonstrate their willingness to participate in importation of maize would lead to their licenses being revoked within the next seven days.
“The millers and grain importers must show proof of trade documents to ascertain that they have commenced importation of the commodities,” he said.
Linturi spoke having a consultative meeting with millers and grain importers who were granted duty waiver licenses by the government to import maize flour and rice at Kilimo House yesterday.
Exchange of words
He was accompanied by Principal Secretary in charge of crops, Kello Harsama. The meeting, according to sources, was characterised by exchange of words between the CS and the millers and grain importers over availability and pricing of the commodity.
Millers complained that the government price of Sh4,200 per 90-kilogramme bag is not attainable based on the current realities in the global market. Further the value chains complained that there is little maize in the global market and available quantities are expensive.
For example, a tonne of maize, they said is landing at Mombasa port at $440 (59,664) which is part of the reason why prices of maize and related products are yet to decrease locally. They dismissed the government assertions that available maize can dock Mombasa at $320 (Sh43,392), saying that price can only be for Genetically modified (GMO) maize. But Linturi dismissed the claims, saying based on the availability of maize within the region, a tonne of the same ought to be received at $320.
The CS added that some countries within the Common Market for Eastern and Southern Africa have maize. “We have information that some segments in the region still have substantial maize. For example, the Mozambique government has agreed to sell maize to Kenya” said Linturi.