Nakuru Farmers Criticise Tax Move On Grains

13 June 2011

Nairobi — The move by Finance minister Uhuru Kenyatta to cut excise duty on maize, wheat and rice has become subject to criticism by farmers in Nakuru.

According to them, the scrapping of the excise duty on maize and wheat will only cushion consumers and not the farmers.

In a telephone interview, the Chief Executive Officer of Cereal Growers Association Mr David Nyameno said, the move will only give consumers and business people the upper hand, but farmers will be disadvantaged since local produce may suffer.

“Scrapping excise duty is beneficiary to customers buying imported maize, but local farmers do not benefit from the zero rating on the grains” Mr Nyameno stated.

The cutting of excise duty was meant to increase food supply as well as reduce their prices. However, the duty is only temporary and will only last for six months.

In order to cushion the farmer and have sustainable food production as per the 2011/2012 budget, Mr Nyameno suggested that the allocation on agriculture should deal with price reduction on farm input and providing farming incentives.

“The budget allocation in the agricultural sector should give farmers relief which is the only way to actualize food sustainability and security” he added.

The finance minister had allocated the agriculture docket Sh100 billion as a move to promote agriculture and enhance food security in the country.

The farmers also called for cushioning by providing agricultural incentives through enhancing infrastructure, further reduction of fuel prices to enhance transportation of food among other farming support structures.

Speaking to Nation, Geoffrey Kibet, a farmer from Njoro in Nakuru County, complained of lack of allocation of funds on farms inputs citing that it would make local food production expensive.

“Farming in the country is now becoming an expensive venture because resources are expensive yet the government is not helping” Mr Kibet lamented.

Also of the same opinion was Mr Samuel Gitonga the chairman of the Nakuru branch Kenya National Federation of Agricultural Producers (KENFAP) who said that the government should support its farmers.

“Farming in the country is becoming less attractive because of expensive farm input yet they are expected to feed the nation” Mr Gitonga said.Mr Gitonga also added the country was facing a temporary food crisis due to low harvests conditioned by unpredictable weather and other factors which the government should have mitigated but did not act in time.

“The cost of seeds which are already scarce are high and so are the fertilizer prices and adding to the list is high fuel prices which all spell doom for agriculture in the country” he said.

Mr Gitonga added that the government should prevent issues like crop failure and provide farmers with relief in order to have sustainable food production in the country instead of seeing importation as a solution.

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