Volatility in the global wheat sector has pushed Kenyans consumers to the edge as the price of bread continues to skyrocket.
Bread is the main breakfast meal for a majority of Kenyans but as matters stand now, this might not be for long.
The hens might just be coming home to roost and soon, bread may be out of reach of many Kenyans.
Early in the week, the International Food Research Policy Institute (IFPRI) raised concerns that drought and wildfires in Russia, which is the largest suppliers of wheat in the world could have a spiral effect on the production of the cereal globally and sending out a warning that the prices of wheat based products could assume an upward trend.
In his 2010/2011 Budget proposal to parliament in June, Finance Minister Uhuru Kenyatta proposed the lowering of duty on imported wheat from 35 percent to 10 percent, to conform with what is charged by member states of the East African Community.
This was also in anticipation of a shortfall in wheat stocks in the country. But even as the government took the measure, the ministry of agriculture projected a bumper harvest of wheat by farmers in Narok.
The Ministry projected that farmers in the region could harvest close to 27 bags of 90 kilos each per acre during the season, compared to 10 bags realised previously.
Kenya has close to 100,000 hectares under wheat cultivation producing 30 per cent of its annual requirement and importing the rest mostly from Egypt and Mauritius under the Common Market for Eastern and Southern Africa (Comesa) to meet its shortfall.
Official figures indicate that Kenya had the second highest wheat import bill after Tanzania, which received about 813,000 tonnes.
Whereas the consumers lauded the move by the minister to lower duty on wheat that could have led to lower cost of bread and other wheat products, this has been short lived as the last three days have seen the price of bread shoot up by three shillings for a 400 grams loaf.
The debilitating drought and wildfires in Russia, the main producer of wheat and a ban on wheat exports by Russian Prime Minister Vladmir Putin are the latest developments in the global market that have complicated matters further.
Russia took the move following unanticipated lower output in Kazakhstan, Ukraine and Canada.
Russia produces about eight per cent of the global wheat supply.
The International Food Policy Research Institute estimates the projected loss of crop at 1.6 per cent of the global wheat supply.
Researchers at IFPRI have been examining the issue to determine if there is in fact cause for serious concern.
Their analysis indicates that price volatility has been within the normal range, future prices reflect normal market adjustments, and global wheat supplies are secure but the rising cost of bread in the country could serve to disabuse this notion.
Posts
No comments:
Post a Comment