Farmers accuse AFA of colluding with cartels as cane prices drop

A man awaits customers to buy sugarcane at Nairobi's Country Bus Park. [Jonah Onyango, Standard]

Sugarcane farmers from Western region have expressed frustrations following significant drop in the price per tonne from Sh5,100 to Sh4,950 and accused the Agricultural and Food Authority (AFA) of allegedly colluding with cartels.

The Interim Sugarcane Pricing Committee announced the new price on Thursday.

“Following the expiry of the interim cane pricing committee in the absence of Agriculture Cabinet Secretary to appoint the same, the price for cane per tonne in the interim is guided at Sh4,950,” read a statement from AFA acting Director Jude Chesire.

The statement was addressed to Agriculture Principal Secretary, the AFA, and all millers.

Previously, sugar factories were paying farmers Sh6,500 per tonne of cane delivered for crushing before the AFA reviewed the price to Sh5,900 per tone on March 5 which has now dropped to Sh4,950 from August.

The announcement came as a shocker to farmers and stakeholders who had hoped that millers would increase the price per tone months after the ministry allowed the resumption of cane crushing.

Speaking to Saturday Standard cane farmers accused AFA of allegedly working with sugar barons saying the new price did not take into account the high cost of production.

“We can now confirm that AFA is working for the benefit of sugar cartels who are out to exploit genuine farmers, we are wondering why would AFA collaborate with the cane pricing committee to lower the price of the cane per tone when farmers and the venture is struggling,” said Mumias Sugar Employees Chairman Patrick Mutimba.

Mutimba claimed that the move is aimed at frustrating farmers to abandon the venture to pave way for sugar importation.

“We have a struggling farming venture that is on its knees and needs to be revived and we are wondering if this trend of lowering the price of cane is part of government measures to revive the sector. We have no doubt that this move is to allow cartels to import sugar because no farmer is going to use more money and resources to get to a paltry Sh4,950 and this will only benefit millers and few cartels,” he said.

“We are going to convene a meeting as farmers to chart the way forward based on the current price because we have not seen any goodwill and change from President William Ruto’s pledge to revive the sector unlike what he does with coffee and tea where they have good price and reforms,” he added.

Kenya National Federation of Sugarcane Farmers Secretary General Simon Wesechere, lamented that fluctuating cane prices often lead farmers to incur losses.

“Our farmers spend more than Sh5,000 to get one tone and if we are going to reward farmers by paying them Sh4,950 less the input injected into the venture then this will remain the key reason why farmers will continue to abandon the crop,” said Wesechere.

He regretted that current cane price was determined unilaterally based on a formula that primarily considers the sugar price on shelves, overlooking other by-products such as molasses, ethanol, and co-generated electricity, where millers mint profits.

“I understand that the (Sugar) Bill before the Senate seeks to enforce similar reasoning so that we get some value for our hard work. If it fails, then the sub-sector will return to the cartels whose main aim is to suppress farmers’ productivity so they can thrive on imports,” he said.

Martin Andambi, a sugarcane farmer from Lurambi said the price reduction will force many to turn to alternative ventures.