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In what ways can the government use to influence the supply of maize in Kenya?

Give ways in which the government can use to influence the supply of maize in Kenya.

Answers

(i) Subsidies: Offering subsidies to maize producers in order to reduce cost of production and hence increase supply.

(ii) Quotas: Can use quotas to control overproduction.

(iii) Price control: Fixing the highest price beyond which a commodity should not be sold at.

(iv) Taxation: Reduction of tax on the price of farm inputs for example, fertilizer may increase maize production.

or

- Increase subsidies the government parts of the pretition cost, making production move affordable.

- Eliminating quotas on production – by not limiting the quality of good to be produced/ producers are free to supply as much as they can to the market

- Favourable price control – the government fixes the prices of produce at high level which encourages emergence of new producers

- Improving acces to credit – the government extends loans to producers through bodies like KIE/IDDG/ICDG to boast investment in production

- Facilitate marketing – the government may form agencies that buy produce to cushion producer.

maurice.mutuku answered the question on July 10, 2017 at 06:28

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