The ongoing conflict between wheat farmers and millers in the country is expected to be resolved following a truce brokered by Agriculture CS Mutahi Kagwe.
The breakthrough came after a day-long meeting between stakeholders in the wheat sub-sector and millers.
Farmers from Narok, Nakuru, Uasin Gishu, and Timau had raised concerns over the low prices being paid by millers, despite a binding agreement and set prices for wheat.
In a resolution reached at Kilimo House on Wednesday, CS Kagwe directed millers to purchase all unsold locally grown wheat, which totals 400,000 bags.
Additionally, the government, through the Agriculture and Food Authority (AFA), will issue C60 import licenses to the 21 millers under the Cereal Millers Association (CMA).
The Ministry also noted that 260,000 bags of wheat, imported by millers, are currently stuck at the port of Mombasa, incurring a demurrage fee of US $0.3 cents per ton per day. So far, 1.3 million bags of wheat have been purchased.
During the meeting, CS Kagwe urged farmers to resist accepting lower prices, stressing that wheat should be sold at the set prices of Ksh5,300 per bag for Grade 1 wheat and Ksh5,200 per bag for Grade 2.
A new Wheat Sector Standing Committee has been established, comprising the Ministry, CMA, CGA, NCPB, AFA, county governments, and farmers.
This committee aims to restore trust in the 2010 tripartite agreement between the CMA, CGA, and the government, ensuring millers purchase wheat at mutually agreed prices while safeguarding farmers’ interests.
One of the committee’s key objectives will be to address the decline in local wheat production, which has now fallen to just 8% of the country’s annual wheat consumption of 26 million bags.
Wheat farmers in Uasin Gishu county.
The committee will also work to enforce compliance with the local wheat purchase program, which mandates millers to buy locally produced wheat before qualifying for the 10% duty remission scheme under the East African Community (EAC) rules, and securing their import allocation quotas.
Present at the meeting were Narok County Governor Patrick Ntutu, Senator Ledama Ole Kina, National Assembly Deputy Speaker Gladys Boss, and Principal Secretary for the State Department for Agriculture, Dr. Kipronoh Ronoh, among other leaders.
