BY HEZRON OCHIEL
MIGORI COUNTY: The government has released Sh192.2 million to Chemelil Sugar Company to offset debts it owes cane farmers.
The arrears, which date back to April last year, were accumulated after the factory stalled for eight months.
The bailout will benefit some 21,000 farmers who feed the factory with cane.
Issuing the cheques to farmers over the weekend, Cabinet Secretary for Agriculture Felix Koskei said the bailout is a wider plan by the government to resuscitate and modernise the dying sugar sector.
‘‘The sector in experiencing myriad challenges and therefore the government has decided to clear all the debts owed to farmers. With this, we are opening a new chapter for the companies to alleviate them from debt burden,” said Koskei.
He asked the farmers to diversify cane with cattle keeping, saying this would enable them have steady income.
But the farmers swiftly rejected the idea, claiming the high rate of cattle rustling in the area cannot allow them to keep livestock.
‘‘You don’t have to worry. The government will solve cattle rustling issue in the area. Alternatively, aquaculture (fish farming) can fetch a lot of money. Currently, Kisumu County is number seven in fish farming and there is need to restore the lost glory,’’ said Koskei.
Koskei also said the government has plans to construct a fish processing plant in the region and called on the locals to position themselves to benefit from the project.
Despite recent introduction of new cane varieties that would mature in less than 18 months and with higher yields and sucrose contents, the region still plants indigenous species that take between 18-24 months and with lower yields.
The new variety produces 15.5 tonnes per acre of harvested cane compared to the normal type that fetches less than 13 tonnes per acre.
Muhoroni MP James Oyoo called on the government to employ competent staff to run the company, adding that farmers in the region have suffered due to poor management of factories.
Chemelil Managing Director Charles Owelle said the company experiences a number of challenges ranging from high cost of production to cane poaching, and called on the government to step in and protect the sector.