Business Daily (Nairobi)
7 May 2008
editorial
With the spectre of a major food crisis flashing on the country's radar screen, the Government's pace and handling of the crisis that has taken global proportions has been wanting.
First were the denials from the Government that all was well despite organisations of repute such as World Food Programme (WFP) having fired warning shots about the food crisis.
Now, the government has set aside Sh2.2 billion to import three million bags against the required quota of four million bags, and risks being priced out of the cereals market should it drag its feet on the importation plan.
As we debate in conference halls over the crisis, the WFP has engaged high gear as it races to create a funding war chest to tackle the food crisis, and Kenya is not on the relief agency's lists.
Some of the areas that the WFP is targeting to buy food from include northern Uganda, which is expecting a bumper harvest.
This would present an awkward situation for the government for two reasons.
First, the government risks being locked out from the cereals market by the well oiled UN agency, which is more likely to buy the cereals from Kenya's door step in Uganda and export it to danger zones including Malawi and Zimbabwe.
Secondly, the increased activity by the moneyed agencies is set to push grain prices to record levels as farmers from the surplus regions move to cash in following the expected spike in demand. In a word it will distort prices.
This would mean that the Sh2.2 billion set aside to buy the three million bags of cereals from the regional market would only buy a fraction of the targeted quota, further worsening the problem.
And attempts to turn to other markets, which include the US and South America, will not help the situation.
Currently, the price of grains and other agricultural commodities are trading at record prices at these twin markets, and are not expected to cool down any time soon.
The booming agricultural commodity prices have been attributed to a drop in stocks and the biofuels boom in the Americas.
Expensive food is not an option to this country especially at a time when the country is reeling from high food prices that have pushed month on month inflation to a 14- month high in April at 26.6 per cent.
Therefore, it's crucial that the Government moves with speed and imports the three million bags immediately. We cannot wait and as we have said here before, time is running out.
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