The dispute between wheat farmers and millers in the country is set to end following a truce brokered by Agriculture CS Mutahi Kagwe.
This breakthrough came after a day-long meeting with stakeholders in the wheat sub-sector and millers.
Farmers from Narok, Nakuru, Uasin Gishu, and Timau had expressed dissatisfaction over the low prices offered by millers, despite a formal agreement on set wheat prices.
During the resolution reached at Kilimo House on Wednesday, CS Kagwe instructed millers to purchase all unsold locally grown wheat, which totals 400,000 bags.
Furthermore, 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 highlighted that 260,000 bags of wheat imported by the millers are currently delayed at the port of Mombasa, accruing a demurrage fee of US $0.3 cents per ton per day.
To date, 1.3 million bags of wheat have been purchased.
At the meeting, CS Kagwe urged farmers to hold firm on the agreed prices, encouraging them to sell wheat at Ksh5,300 per bag for Grade 1 wheat and Ksh5,200 per bag for Grade 2.
Additionally, a Wheat Sector Standing Committee has been established, consisting of representatives from the Ministry, CMA, CGA, NCPB, AFA, county governments, and farmers.
The committee’s goal is to restore trust in the 2010 tripartite agreement between the CMA, CGA, and the government, ensuring that millers purchase wheat at agreed-upon prices while protecting farmers’ interests.
A primary objective of the committee will be to address the decline in local wheat production, which now accounts for just 8% of the country’s annual wheat consumption of 26 million bags.
The committee will also enforce the local wheat purchase program, which requires millers to buy locally produced wheat before they can access the 10% duty remission scheme under the East African Community (EAC) rules and secure import quotas.
The meeting was attended by Narok County Governor Patrick Ntutu, Senator Ledama Ole Kina, National Assembly Deputy Speaker Gladys Boss, Principal Secretary for the State Department for Agriculture Dr. Kipronoh Ronoh, and other key leaders.
