- The leaders questioned why millers were sourcing cane from outside Busia at a time when farmers are incurring losses after failing to deliver to local factories.
- Sugar millers in the country are expected to face a deficit of cane by June in what could trigger sugar shortage in the coming months.
Image: EMOJONG OSERE
Leaders in Busia have put sugar millers and middlemen on notice, accusing them of frustrating farmers with low prices.
Nambale MP John Bunyasi, Agricultural Finance Corporation managing director Lucas Meso and former Funyula MP Paul Otuoma said a group of middlemen has taken over the acquisition of cane, frustrating smallholders’ efforts to grow economically.
They spoke even as it emerged that mills in the country face a cane deficit in what could trigger sugar shortage in the coming months. A current cane availability report by the Agriculture and Food Authority says mills will face a shortfall of 677,584 tonnes of sugarcane by the end of June.
The leaders said middlemen collude with millers to buy cane at prices lower than the amount stated in agreements entered into by local millers and farmers.
They said the farmers who had signed contracts with millers to supply cane to factories are currently stuck with cane in farms as millers are reluctant to buy from them. This allows brokers to buy at throwaway prices, the leaders said.
“We are receiving many complaints from farmers that these factories are not buying directly from them although they had signed agreements with millers to supply cane directly to the factories,” Bunyasi said.
“One of the biggest problems is that there is a lot of cane lying on the farms with no one to pick. And what surprises is that even as this happens, factories continue operating. The factories have stopped buying cane from our farmers and are sourcing it from outside our zone.”
The second-term lawmaker said some of the cane being crushed by millers in Busia is from Kakamega. He questioned why millers were sourcing cane from outside the county at a time when farmers are incurring losses after failing to deliver their product to local factories.
“It has come to our attention that those supplying cane to the factories are brokers and not farmers in Busia. We want to know why factories prefer buying from brokers instead of the contracted farmers,” Bunyasi said.
“I want to warn these millers that they will not ignore our farmers because this is what made Mumias Sugar collapse. Brokers killed the miller and they left. The most important person in this arrangement is the farmer. If they will not buy from the farmer, the producers will abandon cane growing and adopt another crop.”
Otuoma termed regrettable, the decision by millers to buy cane from middlemen instead of farmers.
“This business of using brokers to buy cane from farmers must stop and farmers should stay away from this issue. Don’t let yourselves be used by brokers. And I want to tell the factories that let cane be bought on the farm,” said Otuoma, who is the chairman the Privatisation Commission.
“As privatisation chairman, I will make sure that whenever millers buy cane, farmers must benefit.”
He said the collaboration between millers and brokers sets a bad example at a time when the government is in the process of privatising state mills, including Chemelil, Miwani, Nzoia, Sony and Muhoroni companies.
“I want to urge private factories in Busia to show a good example that will boost the privatisation process that is being championed by the government so that the farmers can benefit,” Otuoma said.
Meso said that as a farmer and leader, he will engage the millers to ensure they buy cane right from their respective contracted growers.
“I want to tell millers that you are in this county courtesy of these poor farmers. Please, buy cane directly from them. You have that ability and the means to do that,” Meso said.
“Right now we have a very good prescribed price by the government. Why are you denying these people that money? If for heaven's sake these farmers are not there, what are you going to do with your mills?”
He called on farmers to make sure that whenever they plant sugarcane, there is a contract signed between them and millers.
Meso said planting cane without signing agreements with millers is what attracts middlemen who, in turn, exploit the growers.
“I am going to take my personal responsibility as a leader from this area to engage the millers so that we find a lasting solution because from what I see this is going to be a security issue in this area and we must ensure that that does not happen,” the MD said.
In response to the leaders’ remarks, however, Busia Sugar managing director Ali Taib said his company will not stop buying cane from farmers outside the county for as long as those external farmers deliver the product voluntarily.
He said farmers from as far as Kakamega who sell cane to his company deliver the product willingly without anyone’s influence.
“If the farmers themselves bring the cane to me, would it be a curse if I bought it?” he said.