The Agriculture and Food Authority’s Sugar Directorate has announced a reduction in the ex-factory price of sugarcane, a decision that has been met with strong opposition from farmers. The newly released price guide, dated August 7th, sets the price at Sh4,950 per tonne for August, down from the previous Sh5,500 per tonne. This change, which comes just as Andrew Mwihia was sworn in as the new Agriculture Cabinet Secretary, has raised concerns among sugarcane farmers who argue that it will severely impact their livelihoods.
The reduction in cane prices is attributed to an oversupply in sugar production, according to Jude Chesire, the director of the Sugar Directorate. Chesire explained that the interim reduction in price is a result of the high sugar production levels, which have influenced the ex-factory price. “Following the expiry of the interim cane pricing committee and in the absence of a Cabinet Secretary to appoint the same, the price of sugarcane per ton in the interim in August is guided at Sh4,950,” Chesire stated.
However, this explanation has not been well received by the farmers. The Kenya Federation of Sugarcane Farmers, led by Killion Osur, has vehemently opposed the new price. Osur and his fellow farmers argue that the reduced price does not reflect the high production costs they face. They claim that this cut will significantly diminish their income and threaten their ability to sustain farming operations. “We are going to mobilize cane farmers to reject the new price set by the regulator,” Osur declared.
The new price guide was released just a day before the swearing-in of the new Agriculture CS, Andrew Mwihia, at the State House. The timing of this announcement has raised eyebrows, with some speculating that the decision might have been expedited to avoid scrutiny from the incoming minister.
The government typically sets minimum support prices for sugarcane to ensure that farmers receive a fair return for their produce. These prices are intended to reflect production costs and market conditions. However, in this instance, the reduction has been perceived as inadequate, particularly given the current high costs of inputs such as fertilizers and labor.
The farmers’ protest highlights a broader issue within the sugar industry, where the balance between production costs and market prices is often precarious. The dynamic nature of domestic and global sugar markets means that prices can fluctuate based on production levels, supply, and demand. The decision to lower the cane price has further strained an already troubled industry, exacerbating financial difficulties for farmers who are already grappling with low returns and rising expenses.
On the other hand, the millers, who are likely to benefit from the reduced cane prices, have remained largely silent. Jayanti Patel, the chair of the millers’ association, has been notably reticent, choosing not to comment on the new pricing structure. This muted response from the millers contrasts sharply with the vocal discontent from the farmers, underscoring the divide between different stakeholders in the industry.
As the debate continues, the future of Kenya’s sugarcane farmers hangs in the balance. The reduction in cane prices poses a significant challenge to their financial stability and could deter investment in the sector. The situation remains fluid, and the involvement of the new Agriculture Cabinet Secretary could prove pivotal in addressing the concerns raised by the farmers and finding a sustainable solution to the ongoing issues in the sugar industry.
