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Cane prices raised to Sh3,800 per tonne

By Kepher Otieno | Oct 17th 2016 | 2 min read
By Kepher Otieno | October 17th 2016

The price of sugarcane has gone up by between Sh300 per tonne with the new pricing ensuring that the least paid farmer will pocket Sh3,800 per tonne, up from the initial price of Sh3,500.

This is the new resolution passed by the cane Pricing Committee (CPC) to boost sugar production and to bridge what had become a worrying stock deficit in warehouses across all the millers.

Currently, sugar factories have been offering farmers different prices, with the lowest payment standing at Sh2,800 and the highest at Sh3,500 for every tonne.

But the committee comprising millers, farmers, the Sugar Directorate and governors drawn from sugar growing areas have set up the new payment at Sh3,800 for every tonne delivered.


Sony Sugar Company Managing Director Jane Pamela, who attended the meeting to review the cane prices, welcomed the changes and said the board will meet next week to effect the price variations.

“We will meet this week to increase our sugarcane prices,” she told The Standard in an interview.

This is the second time the Government is reviewing sugarcane prices in less than a year raising queries over its timing when the country is headed to the general election. Cane farmers have endured frustrations of delayed harvest by millers and poor payments over the last three years.

But given the recent developments things are getting better with several investment projects lined up to boost the industry’s performance, including a possible financial restructuring of State millers.

Industry experts, however, argue that cane prices are only fixed depending on sales of sugar in the market.

Governors Okoth Obado and Jack Ranguma had demanded an increase in prices for cane farmers.

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