The system allows farmers and traders to deposit maize
at a certified warehouse during the months of December to March and obtain a
warehouse receipt.
The move means that farmers can now use the receipt to obtain money from Equity Bank while awaiting sale of their stored produce at the most profitable time.
Its proponents forecast that the move will increase maize production, and that of other cereals, by as much as of 300% and comes as Kenya reels from an acute grain shortage accentuated by an undeveloped market and political crisis. The warehouse receipts form the country’s first organised commodity market.
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The move means that farmers can now use the receipt to obtain money from Equity Bank while awaiting sale of their stored produce at the most profitable time.
Its proponents forecast that the move will increase maize production, and that of other cereals, by as much as of 300% and comes as Kenya reels from an acute grain shortage accentuated by an undeveloped market and political crisis. The warehouse receipts form the country’s first organised commodity market.
Subscribe here to the free animal feed newsletter
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