Flour prices could rise as wheat import approvals delay, millers warn
The Cereal Millers Association (CMA) said continued delays in the approvals are preventing imported wheat consignments from clearing normally, increasing demurrage, storage and financing costs.
Nairobi, Kenya – Wheat millers have expressed concern that delays in obtaining import approvals for C60 wheat, a government control document for wheat processing into flour, could lead to price increases for wheat flour, bread, chapatis and other wheat-based products. The Cereal Millers Association (CMA) stated that ongoing delays are causing increased demurrage, storage, and financing costs, which do not benefit farmers, millers, or consumers.
The C60 permits millers to import a specific amount of wheat under the Duty Remission Scheme, which is essential for Kenya's wheat imports that account for approximately 95 percent of the country's wheat needs, with local production contributing only about five percent. Under current regulations, millers must first purchase local wheat before receiving import permits via the C60 process.
CMA CEO Paloma Fernandes emphasized that the millers have fulfilled their commitments under the Local Wheat Purchase Programme but are still awaiting the outstanding C60 approvals. She urged for the expeditious release of the necessary import approvals to prevent additional costs from being added to the food supply chain. The delays occur as global wheat prices have risen by 5.8 percent in July, reaching 9.9 percent higher than a year ago, according to the Food and Agriculture Organization (FAO).
The CMA attributes the disruptions to Black Sea exports and damage to export infrastructure, which have increased shipping and insurance risks, potentially raising the cost of wheat imports into Kenya. Given Kenya's heavy reliance on imported wheat, the country is particularly vulnerable to international supply chain disruptions.
Fernandes stressed that Kenya cannot afford to introduce further bottlenecks domestically while addressing global supply chain issues. The CMA urged the Agriculture and Food Authority (AFA) and other government agencies to prioritize the release of outstanding C60 approvals, expedite the handling of wheat consignments already at the port, and ensure that administrative processes do not hinder import planning and vessel clearance.
The millers warned that prolonged delays could escalate costs throughout the wheat supply chain, ultimately impacting the prices of flour and other wheat-based products.
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