A significant dispute has emerged between Agriculture Cabinet Secretary Mutahi Kagwe and miraa exporters concerning the regulation of farm gate prices. Kagwe has issued a two-week ultimatum for exporters to adhere to the newly set prices or face license revocation. However, exporters have dismissed these prices as politically motivated and have refused to implement them.
In mid-February, Kagwe announced that the price for a kilogram of Grade One miraa would increase from Sh700 to Sh1,300, while Grade Two would rise from Sh350 to Sh700. Additionally, the price for the Allele variety was set at Sh1,000 per kilogram, up from Sh500. Despite these official rates, farmers report that traders are offering significantly lower prices, with Grade One selling for as little as Sh300 per kilogram.
Kagwe has expressed concern over the disparity between the agreed prices and what farmers are receiving. He criticized the exporters for exploiting farmers, noting that while they purchase miraa at low prices in Meru, they sell it at much higher rates in Somalia. He emphasized that if exporters cannot comply with the set prices, they should consider other commodities.
The standoff has intensified tensions within the miraa industry, with farmers seeking fair compensation for their produce. The government’s intervention aims to stabilize the sector and ensure that farmers benefit equitably from their labor.
