- Millers oppose 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 in April
- The farmers are sticking to their demands that the amount should be paid as directed by the court
Image: FAITH MATETE
Sugarcane farmers have stood their ground over cane pricing saying they are not ready to bargain with millers.
This is despite threats by cane millers to shut down their operations beginning on Friday.
Millers are opposed to a court ruling directing them to pay farmers Sh800 more per tonne, that had been set by the cane pricing committee on April 8, 2024.
The farmers however are sticking to their demands that the amount should be paid as directed by the court.
Kenya Association of Sugar and Allied Products Chairman Charles Atyang' said millers should pay farmers or remain closed.
"We are not ready to bargain with millers. If they don't want to pay sugarcane farmers Sh 5900 per tonne, then let them close factories by today evening. And I'm urging all sugarcane farmers to stick to our demands. Sugarcane is our gold," Atyang' told the Star over the weekend.
He said the rights and roles of farmers must be respected.
"Sugarcane farmers have the right to fair and transparent pricing for their produce, ensuring a reasonable profit margin above production costs."
Kenya Sugarcane Growers Association secretary general Richard Ogendo, said millers are attempting to engage in economic sabotage with their threats.
Ogendo accused the millers of manipulating the gross prices of sugar in order to underpay cane growers for their produce.
They have been asking millers to provide their cost of production, just as farmers do, to allow the Agriculture and Food Authority (AFA) to come up with fair pricing for the benefit of all players.
"How can we ascertain what they are saying? Let them provide their cost of production just like farmers had done before," Ogendo 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 said that the court directive on cane pricing violated their rights and basic trade fundamentals.
Paying Sh5,900 per tonne of cane delivered was an ill-informed attempt to cripple operations that would affect the livelihoods of the farmers and other industry dependants.
"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.
Closure will lead to loss of 30,000 jobs, loss of sugar production and consequently no trading, and loss of revenue topping Sh2 billion monthly.
Other consequences would be loss of income for over 4,000 farmers who supply 720,000 tonnes of sugarcane per month to the factories, valued at Sh3.6 billion. The loss of income would eventually lead to panic, unrest and insecurity in the surrounding communities.