The government is betting on the new Receiving System Council Act 2019 to reduce post-harvest losses for local farmers.
The law, which was assented to in July, provides the legal framework for developing a regulation that will address the challenges of marketing agricultural products.
Senior Secretary of Crop Development and Agricultural Research Hamadi Boga yesterday hailed the law as the antidote to post-harvest losses.
“Our affordability goals include reducing post-harvest losses from 20% to 10% and reducing inefficiencies in the value chain by at least 50%, which will be improved through better storage,” said said Professor Boga at a media breakfast in Nairobi. .
Under this system, farmers will deposit their produce in certified warehouses and then receive a warehouse receipt as proof of ownership.
They can use the receipt as collateral for bank loans, pending the sale of the merchandise at a later stage.
Farmers will also exchange the product in a structured system while protecting themselves from post-harvest losses.
The council will focus on implementing the warehouse receipt system for maize, beans, green grams, coffee, wheat and rice before moving to other agricultural products.
The council has already established five warehouses in which they will start accepting products from farmers from the beginning of next month. Board chair Jane Ngige said she is confident she will fulfill her mandate.
“We are taking office to help farmers store their crops. Our main mandate is to make sure that no farmer sells their produce at a waste price because they have nowhere to store their produce, ”she said.
The law also provides for the creation of a commodity trading market where buyers and sellers come together to trade commodity contracts following rules set by the exchange.
The exchange offers an efficient and modern trading system that protects the rights and benefits of sellers, buyers, intermediaries and the public.