The government has announced the purchase of 321,000 bags of wheat from farmers who have been struggling to sell their produce. Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe made the announcement during a meeting with industry stakeholders on Monday.
Kagwe directed that farmers and aggregators with wheat stocks deliver them to National Cereals and Produce Board (NCPB) depots starting March 4, 2025. He assured farmers that payments for their delivered produce would be processed within 30 days of delivery.
To ensure smooth transactions, the Ministry of Agriculture has also facilitated an agreement between NCPB and millers. According to a statement from the ministry, NCPB will sign a memorandum of understanding with millers, allowing them to collect wheat from the depots. Payments to farmers will be expedited, with millers required to complete transactions within 14 to 21 days.
In an effort to maintain the integrity of the exercise, the government has issued a stern warning against unscrupulous traders attempting to exploit the program by delivering imported wheat to NCPB warehouses. Kagwe emphasized that anyone found guilty of such actions would face legal consequences for sabotaging the process.
This initiative aligns with the government’s broader strategy to reduce dependency on wheat imports. Currently, local wheat production meets only 8% of the demand from millers. The government aims to increase this figure to 40% by investing in local wheat farming and supporting farmers through structured purchases.
Additionally, the NCPB will utilize this exercise to develop a comprehensive database of wheat farmers. This database will play a crucial role in the future distribution of subsidized fertilizer, a measure intended to lower the cost of production and improve wheat yields across the country.
The wheat purchase program represents a significant intervention in stabilizing the agricultural sector and ensuring fair compensation for farmers. By prioritizing local production, the government seeks to enhance food security and economic growth while reducing reliance on expensive wheat imports.