Farmers Protest New Sugarcane Pricing Amid Concerns Over Market Impact

Sugarcane farmers across Kenya are voicing strong opposition to a recent decision by the Agriculture and Food Authority (AFA) to lower farmgate prices for sugarcane to Ksh 4,950 per ton. This new rate, which represents a 3.4% reduction from the previous price of Ksh 5,125 per ton, is set to take effect from August 2024. The reduction has sparked significant unrest among farming communities and industry stakeholders, who argue that it undermines recent progress made in the sector.

The Kenya Sugarcane Growers Association (KSGA) and the Kenya National Federation for Sugarcane Farmers Association (KNFSFA) are at the forefront of the opposition. They argue that the new pricing not only reverses gains achieved under President William Ruto’s administration but also exacerbates the challenges faced by local sugarcane farmers. KSGA Secretary General Richard Ogendo highlighted that the price per ton of sugarcane had seen a substantial increase following the President’s reforms, reaching Ksh 6,100 after the announcement of a Memorandum of Understanding (MoU) with sugar industry stakeholders. However, this price has since fallen to Ksh 5,200, then to Ksh 5,125, and now to the newly announced Ksh 4,950.

Ogendo attributes the recent price decrease to an influx of cheaply imported sugar, which he claims is flooding the local market and undercutting domestic prices. He criticized the Agriculture Ministry for not thoroughly evaluating the impact of these imports on local farmers before approving them. According to Ogendo, this oversight contradicts the efforts of President Ruto’s administration to increase the income of sugarcane farmers as outlined in the Kenya Kwanza Manifesto.

In response to the price cut, KNFSFA Deputy National Chairman Ibrahim Juma warned that the association might mobilize its members to stage protests at both the Ministry of Agriculture’s offices and the offices of sugar millers. Juma cited instances where farmers are already expressing discontent due to millers being unable to harvest their cane. He stressed that any importation of sugar should be accompanied by rigorous research to prevent harm to the local industry.

The controversy has been further fueled by a government notice dated August 7, 2024, which formally communicated the price reduction. The notice, signed by Acting Director June Chesire, indicates that the price adjustment follows the expiration of the interim sugar pricing committee and the lack of a cabinet secretary to appoint a new one. It specifies that the new price of Ksh 4,950 per ton will apply to sugarcane in the interior regions for August.

Kenya’s sugar industry, comprising 16 sugar mills spread across Western, Nyanza, Rift Valley, and coastal regions, is facing mounting challenges. The sector includes both state-owned and privately owned mills. Stakeholders have been advocating for the reinstatement of the Sugar Act, which was repealed with the enactment of the Crops Act 2013 and the establishment of the Food Authority Act 2013. The Sugar Bill 2022, co-sponsored by Navokholo MP Emmanuel Wangwe and Bungoma County Senator David Wakoli, aims to restore the roles of the Kenya Sugar Board, which were transferred to the Sugar Directorate under the Agriculture and Food Authority.

The proposed bill seeks to address several issues within the sugar sector, including the regulation and promotion of the industry, and the establishment of a dedicated Kenya Sugar Board with specific powers and functions. This legislative effort is intended to provide a more structured framework for managing the industry and ensuring that the needs of local sugarcane farmers are met.

In conclusion, the reduction in sugarcane prices has ignited significant backlash from farmers and industry stakeholders. With concerns about the impact of cheap sugar imports and the broader implications for the local sugar industry, there is a call for more comprehensive measures and policy adjustments to support Kenya’s sugarcane farmers and ensure the sustainability of the sector. As the situation develops, it remains to be seen how the government will address these concerns and whether the proposed legislative changes will provide a solution to the ongoing challenges faced by the industry.