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Kenya: State Launches Measures to Avert Food Crisis
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Business Daily (Nairobi)
7 May 2008
Posted to the web 7 May 2008
Zeddy Sambu
The Government yesterday announced interventions to forestall a food crisis that is threatening to grip the country in two months' time.
There will be, among other measures, financial and technical support for some 2.5 million farmers who are set to benefit from a three-year project to provide them with free seeds and fertiliser. So far, some 45,000 farmers have benefited.
Farmers require financial assistance to purchase seed, fertiliser, agro-chemicals and hire tractor services whose costs have skyrocketed. The prices of inputs have been one of the key obstacles to putting more land under cultivation.
In recent months, the cost of production in the North Rift, the country's grain basket, had risen from Sh12, 150 to Sh18, 150, a 49 per cent increase, per hectare.
A 50kg bag of diammonium phosphate, used during planting, now costs between Sh3,800 and Sh4,200, up from Sh2,200 in September last year.
The market price according to Romano Kiome, the Agriculture Permanent Secretary, should be Sh2,300 per 50kg bag.
The inputs programme dubbed Kilimo Bora is expected to help fast track land preparation, procure seeds and inputs on behalf of farmers.
"The ministry will till the land for farmers," Agriculture minister, William Ruto, said.
Commercial banks and other private institutions will also complement the efforts of State-owned Agricultural Finance Corporation to provide more farmers with loans at a subsidised 10 per cent annual interest rate.
On Tuesday, President Kibaki launched a Sh3.2 billion credit facility and announced the importation of three million bags of cereals amidst a looming hunger in the country.
The President also directed Treasury to allocate more funds to Agriculture ministry to shore up the Strategic Grain Reserve.
Currently, the reserves that are managed by the National Cereals and Produce Board (NCPB) hold four million bags and can serve national requirements for about one-and-half-months.
Availability of more funds will see the stocks doubled to eight million bags.
Official estimates show that about three million tonnes of maize would be harvested in the 2007/08 marketing year. It is, however, feared that the national output will have a shortfall of 20 per cent.
Estimates show that about three million tonnes of maize (some 37 million bags) would be harvested in the 2007/08 marketing year.
Currently, Government stores are holding up to 23 million bags of maize, enough to last the next seven-eight months, prompting imports of maize, the country's staple food.
"Imports will avert projected acute shortfall as from June, this year," Dr Kiome said.
The Government has set aside Sh2.5 billion for food imports.
Increased food insecurity is taking real dimensions now as the impact of the post-election violence come to bear.
Nearly 100,000 farming households were displaced for several weeks of the turmoil within the first quarter of the year.
"The conflict affected production centres, the impact of which is likely to carry on up to June 2009," the latest Kenya Food Security update report says.
Substantial post-harvest losses of the 2007 long rains were also experienced as the maize crop had not attained optimal moisture content of 13.5 per cent.
This week's resettlement of refugees is also critical to realising the country's food supply needs as they return to their farms and engage in productive activities. The country has an overall requirement of 32 million bags.
Analysts say interventions could ensure production of up to 33 million bags of maize targeted for the year.
"It is never too late. Government should continue with its policy initiatives," said Lynette Oyugi, a researcher at the Institute for Policy Research and Analysis and research (Ipar).
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Food crisis is a global phenomenon where there have protests against the rising prices and shortage of fertiliser imminent.
The United Nation's World Food Programme has stepped in with a solemn appeal targeting the perennial donors from the developed world.
WFP made an appeal of $755 million, which it says has received above average support, although the threat of new hunger looms.
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