Trans Nzoia county government has commended the National Government for putting in place a legal framework that will guide the warehouse receipt system.
The warehouse receipt system that is being championed by The Warehouse Receipt System (WRS)council and county governments is meant to cushion farmers against poor market prices and post-harvest loses.
According to area Deputy Governor Stanley Tarus, the policies will enable smooth running of the receipt system
“Warehouse receipt system is not a new thing, it did not run smoothly because it did not have legal backing but the government has set up policies and now it has full mandate to market maize on behalf of the farmer through the WRS,” he said.
Tarus was speaking during a farmer’s sensitisation workshop in a Kitale hotel over the weekend.
The workshop attracted organisations which include National Cereals Board, County government of Trans Nzoia, and farmers.
Ware House Receipt system council chair lady Jane Ngige assured farmers of their produce safety in matters of storage and payment adding that the council was ready to start work any time the farmers make deliveries.
“We will support farmers in ways where we can guarantee return of their investment given that the different farmer of today is a hybrid of the old ,the young and the middle age, “she said.
The system allows farmers to deliver their cereal to any registered dealer and upon delivery, the farmers will be issued with a receipt that will act as a title deed.
The farmers can then use the receipt to get loans from 6 banks accredited by the Ware house council.
Trans Nzoia Agriculture CEC Mary Nzomo said that the county is expecting a total harvest of 5.6 million bags of maize from farmers this year indicating that the county was ready for the system having 4 stores across the county.
“We are expecting a harvest of 5.6 million bags of maize this years and we are lucky that we have 4 stores across the county to help the warehouse receipt system operate, “she said.
She stated that the county government will ensure that licensing of the warehouses will be done according to the law to safeguard farmers.
CEC Trade Simon Kisigei said the system will help balance market forces and address the perennial challenge of exploitation of farmers by the middlemen.
Under the system, farmers can hold on the receipt until there is favourable prices before selling their cereals.
By Pauline Ikanda
