Agriculture CS Peter Munya has lashed out at governors lobbying for the reintroduction of cane zoning in sugar-growing areas.
The push is as opposed to allowing farmers from the sugar belt to uphold their freedom to contract with mills of their choice.
“Do we zone certain areas and say it is only this miller who can buy cane from farmers in this particular zone, or do we allow it to be liberalised? That has been the main issue with some governors feeling that we should do the zoning,” he said.
On November 5, farmers from the Western sugar belt petitioned the Senate to protect them against the imposition of sugar zones.
They cited last month’s resolution between the Council of Governors and the Senate Agriculture committee to shelve the Crops General Regulations, 2020, gazetted by the CS on May 27, 2020, over giving farmers the leeway to engage a miller of their choice.
According to the petitioners, contractual farming being fronted in the CoG regulations will not only allow prompt payment of farmers but also expand the market for the farmers as opposed to being yoked to a particular mill.
The regulations propose the creation of a sugar cane pricing committee to regulate the cost of cane.
The CS said competition enables farmers to supply cane to the mill offering the best price.
“If you zone, you stifle competition and you impact negatively on the farmer’s right to be able to sell the cane wherever they want. The government will maintain that position and let the farmers decide where to sell their cane,” he said.
Munya said within the regulations, there is a requirement for standard contracts, which farmers and millers can enter into, so they can have the obligation to sell the cane to that particular miller.
He said they will also be leasing state-owned sugarcane mills once the cases in court are resolved.
“Our position is that for the good of the farmer, zoning cannot be encouraged because it will stifle competition. The farmer will not get the best price available, because he has no alternative but to take his cane. Forcing farmers to supply cane to a particular miller is retrogressive,” the CS said.
