Kenyan farmers threaten cane supply boycott over prices

Josiah Omwenga, a sugarcane farmer works at his 2.5 hectare sugarcane farm in Nyambaria Nyamira county. (Photo: Sammy Omingo/Standard)

The country could be headed for a major sugar crisis with cane farmers now threatening to boycott delivering the commodity to millers over poor pay.

The farmers are demanding a price increase per tonne of cane delivered to the milling factories from the current Sh3,800 to not less than Sh5,000.

Growers associated with Sony, Chemelil and Muhoroni sugar factories questioned the rationale of the current offer from the millers, considering sugar is currently in high demand in the local market.

Addressing farmers in Kisumu at the weekend, Kenya National Sugarcane Growers Association (KESGA) officials led by their secretary-general Richard Ogendo asked the sugar directorate to consider their demands to avert a possible sugar crisis in the country.

Their demands were backed by their Kenya Sugar Federation counterparts led by Joseph Adongo who said the price of a commodity is determined by the dynamics of supply and demand in the market.

CHEAP IMPORTS

He said the Government should call for an urgent meeting of a committee established by the Agriculture and Food Authority (AFFA) to review the cane prices upwards as a matter of urgency.

“The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good, who must be consulted,’’ said Mr Adongo. Farmers and millers have been locked in a long-running tussle over the price of their deliveries where under the current weight-based system, factories determine an average rate which they pay cane farmers regardless of quality.

Farmers have, however, complained it has several shortcomings, including under-weighing at the various weighbridge calibration points in the factories.

The price is usually determined by the prevailing cost of sugar in the local market - which is perennially under pressure from cheap imports.

Kenya Sugar Board (KSB) has in the past fronted a proposal to have farmers paid based on the quality of their cane as opposed to the weight-based system, with sugarcane containing high sucrose content fetching more.

Mr Ogendo, however, insisted farmers must get a price commensurate to the investments that they have put in cane development to improve their income per capita.

“Farmers are increasing investments in cane growing and want to see an increase in their earnings,” he said.

Mr Ogendo said cane farmers should also earn bonuses like their peers in tea and coffee sectors.

Without giving timelines, he said the lobby would rally its members to boycott deliveries until the millers heed their demands.

Last year, Sony Sugar management adjusted the price of cane to Sh3,800 per tonne up from Sh3,570.