KENYA – Sugarcane farmers in Kenya are preparing for a decrease in their earnings following a price cut by the Sugarcane Pricing Committee.
The Committee, which includes representatives from the Agriculture and Food Authority (AFA), the Ministry of Agriculture, farmers, millers, and sugar-producing counties, has set the price of sugarcane at KES 4,950 (US$34.54) per tonne for August.
This represents a decline from KES 5,125 (US$39.42) per tonne in June and a significant drop from KES 6,100 (US$46.92) per tonne in February 2024, marking an 18.85 percent reduction over the past six months.
Jude Chesire, Acting Director at the Sugar Directorate, explained that the price adjustment follows the expiration of the interim cane pricing committee and the absence of a Cabinet Secretary to appoint a new one.
“The price of cane per tonne in the interim for August is guided at KES 4,950,” Chesire stated.
The price cut is attributed to increased sugarcane supply, driven by ample rains and a state-backed fertilizer subsidy.
Cornelly Serem, AFA Chairman, noted that improved cane production has led to a rise in crushing volumes from about 17,000 tonnes per month last year to approximately 80,000 tonnes currently.
This surplus has contributed to lower retail prices of sugar, which now range between KES 139 (US$1.07) and KES 180 (US$1.38) per kilogram, down from KES 180-200 (US$1.54) in March 2024.
The resumption of full crushing capacity by factories has also facilitated the increased supply of cane, as farmers resumed harvesting mature cane that was previously restricted during a period of reduced miller capacity.
However, the Kenya Sugarcane Growers Association has expressed strong objections to the new pricing. Richard Ogendo, the Association’s Secretary General, criticized the price cuts as undermining the gains achieved by recent sector reforms initiated by President William Ruto.
“This means there are people in the Ministry of Agriculture who do not appreciate efforts being made by President Ruto to put more money in the pockets of cane farmers,” Ogendo said.
In response to the sector’s challenges, the government had suspended cane crushing for four months in July 2023 to prevent the harvesting of immature cane.
Additionally, in December, the government approved KES 600 million (US$3.9 million) in funding to boost local sugar production and stabilize prices.
This initiative aims to promote the cultivation of fast-maturing, high-sucrose cane varieties by 2027, aligning with the expiration of the COMESA safeguard.
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