70 maize mills close

Jun 26, 2008

OVER 70 maize mills have closed due to scarcity of maize grain and high power tariffs.

By Jeff Lule

OVER 70 maize mills have closed due to scarcity of maize grain and high power tariffs.

“We have nothing to produce because maize is expensive. There is also a problem of loadshedding and high electricity tariffs,” Paul Nampala, the manager of Kisozi Millers in Kisenyi, said in an interview this week.

“We had over 120 mills, but they have reduced to 30. Many closed because they could not meet the demand. Also, the maize is too expensive compared to a few months back,” he explained.

Nampala said a sack of old maize stock costs sh65,000 from sh32,000, while freshly-harvested maize costs sh57,000 from sh22,000 before.

He said due to the scarcity and high cost of maize, the cost of first class quality maize flour had risen to sh110,000 from sh90,000 the previous months, while second class maize flour costs sh90,000 from sh75,000.

“Before, we were producing 50 sacks of maize flour per day. Today, we produce less than 10. This has made us run out of business and even lose our jobs,” he said.

Nampala said maize mills in Kisenyi were employing over 800 people.

He asked the Government to invest more in agriculture in order to solve the prevailing food crisis, adding that the high power tariffs should also be reduced.

Nampala said maize mills use a lot of electricity.

“Schools and other big organisations prefer other foods like matooke and sweet potatoes because they are cheaper,” he said.

Nampala said the price of a kilogramme of old stock maize had increased to sh650 from sh320, while newly-harvested maize costs sh570 from sh200.

(adsbygoogle = window.adsbygoogle || []).push({});