Kenya to import four million bags of maize by December

Kenya is expected to import 4 million 90-kg bags of maize (360,000 tonnes) in the six months to December to plug a production deficit, its Agriculture Ministry said. Poor rains have affected maize production in the east African nation's main bread basket, the Rift Valley. Output from the region usually accounts for about 80 percent of the country's total maize harvest.
The country's national maize stocks as at June 30 stood at 8.4 million bags, with the state-run National Cereals and Produce Board (NCPB) holding 2.5 million bags. Farmers had in their custody 4.4 million bags, while traders and millers held 1.3 million and 0.2 million bags, respectively.
"From this balance sheet, a deficit of about 3.8 million bags of 90 kgs projected to be experienced between June and December. It is therefore advisable to allow importation of 4 million bags to bridge the gap," the ministry said in a brief seen by Reuters. "Compared to maize stocks as at May 30 which stood at 13 million bags the stocks as at the end of June 2011 have declined by 4.5 million bags."
The government is anticipating a supply shortfall of 14.8 million 90-kg bags in the 2011/12 season due to drought. The stifled production has had a direct effect on Kenyan households amid steady climbs in the price of maize flour. "High and unstable prices of key staples such as maize and beans continued in the month of June severely affecting food accessibility for most households," the ministry said.
The country's year-on-year inflation rate hit 14.49 percent in June, fuelled by food and fuel costs, and is seen rising further. "The inflows of maize stocks from neighbouring countries improved slightly in June but not enough to ease the pressure on demand and prices of key staples," the ministry said.
Kenya has zero-rated duty on maize imports for the rest of this year. The state-run National Safety Authority is also in the process of putting in place finer details in a law allowing importation of genetically modified (GM) maize into the country to mitigate the looming shortage. Kenya last Friday approved laws to allow for production and importation of GM crops, making it the fourth country in Africa to open up to such products.