Discontent as State raises cane buying price by mere Sh50

Sugarcane farmers have criticised the Ministry of Agriculture for increasing sugarcane buying price by a mere Sh50.

This is after newly appointed Agriculture Cabinet Secretary Andrew Mwihia Karanja revised the sugarcane buying price from Sh4,950 set earlier this month to Sh5,000 per ton.

“The Sugarcane Pricing Committee, whose primary mandate is to set and review sugarcane prices, held a meeting today, 21 August 2024, at Kilimo House and approved a revised price of Sh5,000 per ton of sugarcane, up from Sh4,950 per ton,” he announced.

“The new price aligns with prevailing market conditions, considering fluctuations in sugar prices, production costs, global trade dynamics, and the need to enhance farmers’ income. This new price will be effective from 22 August 2024.”

The ministry’s decision made public on Monday, has sparked outrage among farmers, who see the increase as an insult to a sector that is still recovering from a severe sugarcane shortage.

The shortage had led to the closure of mills for nearly four months last year due to a lack of cane.

“I believe the Agriculture Ministry's Cane Pricing Committee (CPC) is more focused on serving the interests of millers rather than those of farmers,” said Francis Wangara, Secretary-General of the Kenya Union of Sugar Plantation and Allied Workers (Kuspaw).

“I vividly remember that during last year’s acute sugarcane shortage,  millers voluntarily offered farmers the best price of Sh6,050 per ton of sugarcane.”

Wangara further lamented the recent drop in prices, stating, “The price has been mysteriously decreasing, and now they’re pushing for Sh5,000 per ton, which is lower than last year. This is happening despite the fact that sugar prices on supermarket shelves have remained constant, the Ministry has reportedly banned cheap imports, and the cost of producing a ton of sugarcane has remained high. It seems someone wants to keep farmers on edge.”

“We need strong leadership in the sub-sector to ensure that farmers remain in business,” he added. 

A farmer in a sugarcane farmers’ group remarked: “So adults with sane minds took their time to meet, spent money and other things to add farmers a whooping Sh50.”

Another farmer who sought anonymity claimed that the Ministry was taking them for a ride and is keen to push them out of business.

“The price is set to push farmers out of business to allow for cheap imports,” he said.

Last year, farmers sued the ministry over arbitrary pricing, demanding measures such as a ban on cheap imports, a revision of the pricing formula, and the removal of VAT on transport to protect their earnings.