Miraa farmers struggle to sell produce as traders reject new prices in Kagwe's directive
The government had set new prices after negotiations, with Grade 1 miraa expected to sell at Sh1,300 per kilogram, Grade 2 at Sh700 and Allele at Sh1,000.
A directive by Agriculture Cabinet Secretary Mutahi Kagwe to double miraa prices was initially met with celebration among farmers in Meru's Igembe region.
However, nearly two weeks later, those expectations have turned to frustration as traders continue to reject the new prices, leaving farmers struggling to sell their produce at a profit.
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The government had set new prices after negotiations, with Grade 1 miraa expected to sell at Sh1,300 per kilogram, Grade 2 at Sh700 and Allele at Sh1,000.
But according to Miraa Farmers and Pluckers Association Chairman Japhet Mutuma, traders are refusing to comply, instead offering Sh600 for Grade 1, Sh250 for Grade 2, and Sh350 for Allele.
"Despite the directive by the CS, the buyers are taking advantage of the glut caused by the recent boycott to suppress prices. They are also leveraging on the upcoming Holy month of Ramadan.
"Indeed, some traders are telling farmers who insist on the new price to sell the produce to the CS," he added.
The Agriculture Food Authority (AFA) Miraa Pricing Formula Committee Chairman James Mithika acknowledged that traders were ignoring the government's pricing.
"We have since sent letters to the buyers urging them to adhere to the prices announced by the CS. The prices were a result of lengthy consultations involving all players. We agreed on the prices after taking into consideration the cost of producing a unit of miraa," he said.
Challenges in miraa trade
Mithika noted that the government was addressing key challenges in the miraa trade, including cartels at Jomo Kenyatta International Airport (JKIA), market restrictions in Somalia, and a monopoly by a single importer in Mogadishu.
"We are also looking into the reopening of the border for trade," he added.
Nyambene Miraa Trade Association (Nyamita) Chairman Kimathi Munjuri pointed to cartels at JKIA as a major obstacle to enforcing new prices.
"The cartel has a stranglehold on buyers and is warning them against complying with the prices announced by the CS. Shippers give orders to agents who in turn buy at their own terms. The cartel has the say on who can export from Nairobi," he explained.
Munjuri added that traders were taking advantage of farmers by offering low farm-gate prices, worsening the situation.
"We have a lot of miraa in the farms because of the recent boycott. We estimate losses running into Sh1 billion," he said.
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- Meru
- miraa
- Agriculture Cabinet Secretary
- Mutahi Kagwe
- miraa prices
- Miraa Pricing Formula Committee
- Igembe
- Agriculture Food Authority
- James Mithika
- Nyambene Miraa Trade Association
- Nyamita
- Miraa farmers struggle to sell produce as traders reject new prices in Kagwe's directive
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He further noted that Somalia's miraa trade is tightly controlled, with a single importer dictating daily volumes.
"There is only one importer in Somalia who decides the volumes per day. They have also capped the export volume, meaning the forces of demand and supply are not operational. This is why we say the prices agreed should be in force throughout the year," Munjuri said.
Farmers are now urging the government to step in with stronger enforcement measures to ensure they benefit from the new pricing structure.
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