Millers say new cane prices unattainable

By Peter Atsiaya

Sugar millers have rejected new cane prices announced by Kenya Sugar Board (KSB) last week.

Kenya Sugar Manufacturers Association (Kesma) said the new prices of Sh2, 500 announced by KSB chairman Okoth Obado were unattainable.

Speaking in Kisumu the association dismissed Obado’s announcement terming it personal and not KSB’s position. The association’s chairman Evans Kidero said Obado failed to consider factors that determined prices of sugar.

"Obado’s statement was misleading and likely to cause misunderstanding between farmers and millers," said Kidero.

Briefing the Press after a Kesma meeting at KSB offices in Kisumu, Kidero said millers were focused on improving cane prices to benefit farmers.

Kidero, who is also the Mumias Sugar Company Managing Director, said his company had increased cane prices from Sh2, 425 to Sh2, 489.30.

"We are focused on ensuring that farmers benefit by raising cane prices, but not at the expense of miller," said Kidero.

He added that members of the board were not consulted before announcing the new prices.

Said Kidero: "Kesma has two members sitting on the board. We have never had a meeting to set new cane prices."

He added Obado’s mandate is to chair the meeting not to fix prices. Last week, Obado announced all sugar millers should implement the new prices.

Mandate questioned

All managing directors of the six sugar companies and their representatives, including Kidero on behalf of Mumias, attended the meeting.

A member of the cane prices committee Saul Busolo denounced the new prices causing more division in the board. Obado is the chairman of KSB’s Cane Pricing Committee.

"The committee has not met to discuss prices, where did Obado get mandate to make such directive?" posed former KSB chairman.

Mr Busolo, who is also a KSB director, claimed certain individuals were out to sabotage cane production so that they could import the commodity.

"This group of people want to antagonise farmers with the millers over cane prices so that the production of sugar falls. We must stop them now," said Busolo.