Govt agencies buying maize should offer the same prices

The National Food Reserve Agency (NFRA) and the Cereals and Other Produce Board (CPB) are next week expected to start doing the needful, with an initial 90,000 tonnes, this only days after the release of 50bn/- by the Treasury.

The focus is chiefly on the Southern Highlands regions of Iringa, Katavi, Mbeya, Njombe, Rukwa, Ruvuma and Songwe, with the purchases extending to Dodoma and Manyara, all having grain stockpiles as yet unsold.

Agriculture minister Prof Adolf Mkenda told journalists in Dodoma that NFRA would buy the crop in seven regions at 500/- per kilo, while CPB would be doing so at what it would discern to be the market price.

In the circumstances, where no real competition is being faced from other buyers, it means it will offer a different price level at each place (district or region) on a take it or leave it basis, as the nature of price is that there is no negotiation.

On the basis of market prices indicated the earlier week, it is easy for CPB to quote prices as ranging from 200/- to 250/- per kilo, while farmers in other areas are being paid twice as much.

The minister did not apparently figure out that this would naturally lead to negative interpretations as the official policy.

He similarly affirmed that the maize would be bought through agricultural marketing cooperative societies (AMCOS) and other registered agro-sector groups.

Smallholders amounts not exceeding 300 sacks of maize or 30 tonnes of the produce would be taken up individually.

There is an indication of oversight relating to responsibility and equity in the fact that the two agencies are operating as entities with different rules in buying maize.

One is running as a food reserve agency and the other as a crop trader, purchasing low and expecting to sell high. But all that people in those areas know is that the government will be making the purchases with their taxes.

It must be admitted that there is little room for government agencies to act differently to maize producers, one list being offered 500/- per kilo as maize price, which is close to optimal price on the basis of recent market reports.

The usual higher purchasing price was 450/- per kilo, to which it can be said that farmers are used, even as it scarcely pays their input costs, labour and time.

It is therefore vital that the minister tasks the agencies to buy maize at the same price countrywide, where any grading ought to be based on quality rather than market, since maize traders were not free to make purchases in the first place.

Crop authorities causing pain to the people won’t help the government but will instead invite disaffection. Government can liberalise markets, all right, but should not hold out and pay ‘arbitrary’ prices.