Government Delays Push Up Wheat Import Costs, Prices

The Cereal Millers Association (CMA) has raised concerns over delays in government approvals for wheat imports, which could lead to increased costs for millers and higher prices for consumers. According to Paloma Fernandes, CEO of CMA, the delays are causing demurrage, storage, and financing costs that do not benefit farmers, millers, or consumers.

The association is urging the Agriculture and Food Authority (AFA) and other government agencies to release outstanding C60 approvals, prioritize consignments already at the port, and prevent administrative delays from disrupting wheat imports. Millers have committed to buying local wheat at Sh5,100 per 90-kilogram bag, up from Sh4,750.

The global wheat market is under pressure due to disruptions to Black Sea exports and damage to export infrastructure. The Food and Agriculture Organisation (FAO) reported that global wheat prices rose 5.8% in July and were 9.9% higher than a year earlier.