Sugarcane farmers push for new crop pricing committee
Sugarcane farmers are pushing the government to constitute a pricing committee to enable them gain from sharp increases in sugar prices.
While the term of the previous committee expired in December, the farmers faulted the prolonged vacuum that they say leaves them at the mercy of millers.
“Despite the sharp spike in sugar prices, it is unfortunate that cane price has stagnated since August last year,” said Sugar Campaign for Change (Sucam) coordinator Michael Arum.
The committee reviews prices after every three months. The last review by the nine-member interim team approved Sh4,584 per tonne.
However, to beat their competitors and survive amid the biting shortage of sugarcane, both the public and private millers have been forced to bow to the forces of demand and supply to woo farmers to their side.
In line with the Agriculture and Food Authority (AFA) and the Crops Act 2013 and the Crops (Sugar) (General Regulations) 2020, the Ministry of Agriculture is expected to constitute the committee to review cane prices.
The Sugarcane Pricing Committee uses a simplified formula to ensure that farmers benefit directly from improved sugar prices.
Kenya Association of Sugarcane and Allied Products chairman Charles Atyang’, however, accused millers of colluding to pay farmers lower rates.
Sony Sugar Company acting managing director Stephen Ligawa told farmers the company adjusted its price from Sh4,584 to Sh5,500 from June 20, 2023.
“This upward review takes the current business dynamics into consideration,” noted the statement in part.
The adjustment will now present competition to the neighbouring Transmara Sugar Company paying Sh5,250. West Kenya and Sukari Industries also pay Sh5,500.
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