- Sugar growers secretary general Richard Ogendo accused the millers of manipulating gross prices of sugar in order to underpay them for their deliveries.
- The Kenya Sugar Manufacturers Association said that the court directive on pricing was a violation of their rights and basic trade fundamentals.
Image: FAITH MATETE
Sugarcane farmers have accused millers of attempting to engage in economic sabotage over their threats to shut down operations over sugar pricing.
The farmers termed the threat an attempt to blackmail the government as there was no valid reason for shutting down their operations.
The cane millers threatened to shutdown their operations begining this week Friday.
They opposed a court ruling that directed them to pay farmers Sh5,900 up from Sh5,100 per tonne that had been set by the cane pricing committee on April 8, 2024.
Led by Kenya Sugarcane Growers Association (Kesga) secretary general Richard Ogendo, the farmers on Thursday accused the millers of manipulating the gross prices of sugar in order to underpay them for their deliveries.
Ogendo said farmers had already provided their cost of production and millers ought to do the same.
The SG said they have for a long time been asking for this and it was just in order for the millers to provide it to allow the Agriculture and Food Authority (AFA) to come up with a fair pricing for the benefit of all the players.
"How can we ascertain what they are saying? Let them provide their cost of production just like farmers had done before," Ogendo affirmed.
He further called for the operationisation of cane testing units.
Ogendo noted that it was unfair to pay farmers based on sucrose content as opposed to weight of their cane.
"This is vital because it will ensure farmers are paid for quality and get more earnings ," he said.
The millers through the Kenya Sugar Manufacturers Association sent a protest letter dated May 6, 2024, to the AFA, Ministry of Agriculture, Treasury, Kenya Union of Sugar Plantation and Allied Workers and Kenya National Federation of Sugarcane Farmers.
Through their chairman Jayantilal Patel, the Association indicated that the court directive on pricing for cane delivered was a violation of their rights and basic trade fundamentals.
They further argued that paying farmers Sh5,900 per tonne of cane delivered was an outright and ill informed attempt to cripple their operations and consequently the livelihoods of the very farmers and other industry dependants.
They also argued that the price was a violation of the mandate of the cane pricing committee and one that would cause far reaching financial implications on the part of millers.
"The price set by the court is unsustainable in the economic situation and infringes on the contractual arrangements between us and the farmers. This is totally unacceptable and untenable," the protest letter read in part.
The Association further indicated that their planned closure will lead to loss of 30,000 jobs, loss of sugar production and consequently no trading of sugar, loss of revenue topping Sh2 billion every month as well as suspension and weekly payments of farmers.
Other consequenses, they said, would be loss of income for over 4000 farmers who supply 720,000 tonnes of sugarcane per month to the factories valued at Sh3.6 billion.
They said this would eventually lead to panic unrest and insecurity in the surrounding communities due to loss of daily income.