October 29, 2007

Uganda, Tanzania buyers snapping up Kenya corn at low prices

Corn buyers in Uganda and Tanzania are taking advantage of a delay in the opening of Kenyan corn storage by buying the commodity from Kenyan farmers at a throwaway price, an official from the state-run National Cereals and Produce Board, or NCPB, said Friday (October 26).

The official, who asked not be identified, said the middlemen from Uganda and Tanzania are paying farmers as little as 800 Kenyan shillings (US$12) for a 90- kilogramme bag. Last month the NCPB advertised to buy the same quantity of corn at KES1,300, but most of its stores in the region are yet to be opened as they have to clear the old stocks.

"These middlemen know the farmers are in need of money for preparation of the next season and school fees for their children," said the official. "Now they can offer them anything and take away their produce."

The official said NCPB deports in the region were scheduled to be opened by mid-November.