Weak policies to blame for cane poaching menace, says lobby group

Lack of policy on sugar industry regulation is to blame for the cane poaching menace.

Sugar Campaign for Change (Sucam), a sugar sector lobby, argues that weak policies form the bedrock for cane diversion, which has left the public millers crushing immature cane as they grapple with underproduction.

The delayed publishing of Sugar Industry Regulations, which have remained in draft form since 2004, is a loophole exploited by farmers to divert cane to new rivals, according to Sucam.

"Sugar industry regulations have remained in draft form since 2004, what the millers are using as contract with farmers are tailor-made provisions which are not in themselves strong enough to bind them (farmers) to the millers," he said.

He said the absence of water-tight contracts between independent farmers and millers was the root cause of cane diversion, which has been christened cane poaching.

He said the Government was dragging its feet in publishing these regulations because it fears shooting itself in the foot.

"The regulations contain several provisions that if adopted will hurt the public millers," he said, "It therefore wants to privatise the companies before gazetting the regulations."

In the regulations, he said, the millers would be legally bound to timely harvesting of cane from all farmers in their contract or face legal repercussions.

"They (the regulators) know that with the liberalisation of the markets under Comesa, the millers will be faced with market challenges and are therefore careful to print the regulations," Mr Arum said.

He claimed the regulations, which also sealed loopholes for exploitation of farmers by the millers, were taken to the Government printer in 2005 but were fought by millers and barons.

He also cited weak surveillance by the contracting sugar companies and delayed payments as other reason for rampant cane diversion.

Unchecked licensing of new millers within territories of old was another contributor.

Farmers' unions echo these sentiments, saying cane wars that have collapsed contracted cane farmers (outgrowers) is a threat to the sector and may even cripple planned privatisation of public sugar millers.

Kenya Union of Sugarcane Planters and Allied Workers Secretary General Francis Wangara said none of the five State-owned or controlled sugar companies – Mumias, Nzoia, Sony, Muhoroni and Chemelil – is crushing its full capacity, with most of them forced to crush immature cane.

"There is a serious cane shortage in the industry and the Government has abused zoning regulations through continued licensing of new millers without considering availability of raw material," he said, "We have also established political motives behind these new millers to collapse existing ones."