Sugarcane farmers have opposed new rates announced by the Agriculture and Food Authority (AFA) which will see farmgate prices reduce by 3.4pc.
In the new rates expected to take effect from this month, AFA has directed millers to pay farmers Ksh 4,950 as opposed to Ksh 5,125 per ton.
The Kenya Sugarcane Growers Association (KSGA) and the Kenya National Federation for Sugarcane Farmers Association (KNFSFA) have rejected the new prices saying this was a drawback to the gains that had been achieved under President William Ruto.
KSGA Secretary General Richard Ogendo said that the price per ton of sugar had been raised after the president announced reforms in the sector.
“The price per ton of cane was Ksh 6,100 after the President announced the reforms in line with the Memorandum of Understanding (MoU) signed with sugar stakeholders with the Kenya Kwanza regime. Unfortunately, the price fell to Ksh 5,200, then to Ksh 5,125 and now Ksh 4,950,” he said.
Ogendo raised concern that the current reduction is a result of flooding of the local market with imported cheap sugar.
The associations blame agriculture ministry top officials for failing to study the local market systems before approving importation of cheap sugar.
“It seems there are people in the Ministry of Agriculture who do not appreciate efforts being made by President Ruto to put more money in the pockets of sugarcane farmers as per the Kenya Kwanza Manifesto,” Ogendo added.
KNFSFA deputy national chairman Ibrahim Juma said that the association will be forced to call its members to protest at the ministry’s offices and millers unless the government reverses the directive.
“Some farmers are already up in arms in some regions because the millers are unable to harvest their cane,” he said.
“Importation of sugar into the country should only be sanctioned after a thorough research to ensure that what comes into the country does not hurt the local industry,” he added.
In a notice dated August 7, 2024, the government through AFA, announced reduction of sugarcane prices in the month of August.
The notice, reads, “Following the expiry of the interim sugar pricing committee and in absence of a cabinet secretary to appoint the same, the price of cane per ton in the interior for the month of August is guided at Sh 4, 950,” and signed by acting director June Chesire.
The letter is addressed to sugar millers and copied to the principal secretary, state department of Agriculture and AFA Director General.
Kenya has 16 sugar industries spanning, western, Nyanza, Rift valley and coastal regions, state and privately owned.
Stakeholders in the industry have been seeking to reinstate the Sugar Act which was repealed through the enactment of the Crops Act 2013 and established the Food Authority Act 2013.
The Sugar Bill 2022, co-sponsored by Navokholo MP Emmanuel Wangwe and Bungoma County Senator David Wakoli seeks to, among other things, restore the roles of the Kenya Sugar Board currently undertaken by the Sugar Directorate of the Agriculture and Food Authority established under the Agriculture and Food Act 2013.
The Bill also provides for the development, regulation and promotion of the sugar industry to provide for the establishment, powers and functions of the Kenya Sugar Board.
