Farmers: Millers' threat to shut crushing over new prices 'selfish'

Business
By Robert Amalemba | May 10, 2024
A farmer transporting sugarcane to the factory. [Caleb Kingwara, Standard]

Sugarcane farmers have accused millers of being selfish after they threatened to stop milling operations today to protest a court order directing them to increase the price of cane.

The farmers said the Sh5,900 per tonne price the court ordered millers to pay was fair enough going by the expenses they incur.

"The millers know the amount of money we spend to produce a tonne of sugar and we get very little profit from the Sh5,900 they (millers) pay us. Just the other day before the factories closed down due to shortage of cane, the buying price was Sh6,100 yet the millers were not complaining," said Charles Atyang Atiang, Kenya Association of Sugar and Allied Products chairman.

Kenya National Federation of Sugarcane Farmers Secretary General Simon Wesechere said the millers' threats were not practical.

"It is pretentious for any miller to say he is not making profits or is hurt by the new price because they gain unfairly from cane delivered by farmers. They share the profit from cane on a 50:50 ration when in other nations, millers get 30 per cent of the profits while farmers take home 70 per cent."

This comes even as the Agriculture and Food Authority (AFA) appealed to the millers to drop the threat and embrace dialogue.

"I know the contention between the framers and millers stems from a court matter which we ought not to delve into. The most important thing is for the two to work together for the growth of the sugar sub-sector. We would love this conflict to be resolved as soon as possible," said Jude Chesire, who heads the directorate. "Our offices are open for us to shepherd dialogue between the warring parties so that we continue to operate harmoniously the way we have been doing."

Justice Jairus Ngaah on April 24, 2024, ordered the 16 millers in the country to buy a tonne of sugarcane at Sh5,900 from an initial price of Sh 5,100 set by the Sugarcane Pricing Committee (SPC) until a case filed by over 260,000 farmers is determined. They had questioned the logic behind the drop in sugarcane price.

Share this story
Mortgages fall short in solving Kenya's housing crisis
Mortgage model of home ownership is increasingly being viewed as unsuitable for Kenya’s economic structure.
State banks on sensitisation forums to unlock Kenya's Pig sector as pork demand rises
The government is now banking on public sensitisation forums on the pig value chain aimed at building a resilient, competitive, and inclusive pig industry.
IMF to Ruto: Stop lying on hidden debt
Without a new programme, Kenya’s options are narrowing. Domestic borrowing remains expensive, and international markets are largely closed.
Idea behind Local Content Bill good, but challenges lie ahead
The bill seeks to ensure that investment does more than pass through the economy but embeds itself within it.
After clinching Sh377b in trade deals, State now faces harder part
Despite securing Sh377 billion in trade deals, Kenya now faces the tougher challenge of turning promises into real investments, jobs, and timely execution.
.
RECOMMENDED NEWS