Rice Prices Set to Decline Due to Increased Production

Households are set to enjoy low rice prices during this festive season as Mwea, which is the largest irrigation scheme in Kenya has reported a 40 percent drop in prices.

This being the harvesting season, a kilogram of Pishori at Mwea, which is currently retailing at 120 shillings from the previous 200 shillings last month. Retail prices though are yet to fall due to old stocks.

According to the National Irrigation Board, rice production at Mwea Irrigation Scheme dropped from the average 830,000 bags yield in the season that ended in March to 332,000 bags due to a prolonged drought that the country faced. This, in turn, led to high prices.

“We are expecting a good harvest this season and this has already impacted positively on the price with a kilo now retailing at 120 shillings from 200 shillings last month,” said Innocent Ariemba, Mwea scheme manager.

Ariemba was positive that a total of 650,000 bags of 100 kilograms will be harvested from the current 26,000 acres under crop.

The ratoon variety, which will commence next year will yield 260,000 bags, boosting the available stocks.

Mr. Ariemba had last month said the price would drop mid this month. “We have not changed our prices as we are still selling the old stocks, but I think we shall do that once we get the cheap grain,” said an attendant at the supermarket.

The volume of rice imports this year rose to 353,082 tonnes from 261,819 tonnes in the same period last year according to Kenya National Bureau of Statistics. The increase was to cover the local deficit.

Mwea irrigation scheme accounts for 80 percent of Kenya’s rice production playing a major role in the supply of the grain in the country that relies on imports to bridge the deficit.

Kenya produces 150,000 tonnes a year creating a deficit of 250,000 met through imports.

Rice consumption has been growing 10 percent yearly and now stands at 400,000 tonnes, according to State data.