A 90 kilogram bag of maize will sell at Sh. 3,200. This is according to the Ministry of Agriculture.

Agriculture cabinet secretary Willy Bett announced the price, which is six per cent more than last year’s when the National Cereals and Produce Board (NCPB) paid Sh3,000 for similar quantity of maize.

“Based on the cost of production and in consideration of the farmers’ mark-up of 35 per cent (Sh. 790 per bag), the SFR Board has recommended that the producer price for a 90 kg bag of maize be Sh. 3,000,” he said.

Of the Sh. 3,200 that the government will pay, Sh200 is rebate to the growers for the extra cost incurred during planting.

“Owing to the adverse weather conditions coupled with other numerous challenges such as outbreak of Fall Armyworm during the period, the government has provided a rebate of Sh. 200 per 90 kg bag of maize offered to NCPB,” he added.

Mr Bett’s announcement came only a week after Tegemeo released the findings of a study indicating that the cost of producing a 90 kilogramme bag of maize stood at Sh2,200 this year, meaning that farmers will make Sh1,000 for every bag sold to NCPB.

“After critical analysis and harmonisation of the cost of production reports from the Ministry of Agriculture and Tegemeo, the cost of producing a 90 kg bag of maize was determined to be Sh2,257,” Mr Bett said.

Farmers, through their lobby, the Cereal Growers Association (CGA), said they expected Sh3,500 for a 90 kg bag.

Agribusiness Information

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