Cane farmers want Comesa import safeguards extended
News
By
Mohamed Awal
| Nov 20, 2020
Sugarcane farmers are pushing for the extension of restrictions on sugar imports.
The Kenya National Alliance of Sugarcane Farmers Organisation says with the looming expiry of import safeguards by the Common Market for Eastern and Southern Africa (Comesa), farmers might lose market for their produce.
The safeguards allow Kenya to limit duty-free sugar imports from Comesa countries to a maximum of 350,000 tonnes annually.
The organisation's chairman Saulo Busolo said the safeguard measures, which were introduced in 2002 and have been extended nine times, have had some success.
“If the sugar imports keep coming without restrictions, it will not safeguard farmers and the prices of sugar will be depressed. In the end, the sugar industry will die,” he said.
READ MORE
As Kenya braces for Iran war fallout, CBK forex reserves hit Sh1.82t
Standard Chartered targets key sectors in new financing push
Iran-US war costs Kenyan flower exporters Sh623 million
Tea factory bosses warn new law for sector to hurt farmers
Farmers turn banana stems waste into wealth
AMAC signs deal with Uganda's Grain Council to open regional markets
Konza, Microsoft bank on AI skills to accelerate women in creative economy
Iran war: Why Kenyans should brace for fuel crisis despite State's assurance
Kenya’s sugar production cost is estimated at more than Sh60,000 per tonne, twice that of other key sugar-producing Comesa countries, making the country an attractive export market.
The call for the extension comes months after the Agriculture ministry banned the importation of raw cane and brown sugar.
The ban in July led to a decline in sugar production among local millers, who fill the deficit with the importation of raw sugarcane from Uganda. As it stands, the country currently is unable to compete with other member states on duty-free quota-free terms.
This made the government lease some State-owned factories that have declined due to mismanagement, corruption and influx of cheap imports.