Government Sets New Sugarcane Price At Sh5,000 Per Tonne

The government has set the price of sugarcane at Sh5,000 per ton, a slight increase from Sh4,950 in August, but still lower than the previous high of Sh5,900.

In a letter dated August 30, 2024, Principal Secretary Kiprono Ronoh announced the new price, effective from August 22.

The decision follows a review by the sugar pricing committee, which considered the prevailing factory sugar prices from May to July.

“Having considered the prevailing ex-factory sugar prices for May to July 2024, the committee approved the price of sugarcane to be Sh5,000 per tonne effective August 22, 2024,” the letter reads.

The Agriculture and Food Authority (AFA) had earlier directed millers to pay Sh4,950 per ton, down from Sh5,125.

In an August 7 notice, AFA acting director June Chesire communicated the lower price to sugar millers, citing the absence of a Cabinet Secretary to reappoint the sugar pricing committee. This interim price drop has faced criticism from sugarcane farmers.

The Kenya Sugarcane Growers Association has rejected the new price, calling it a setback to reforms initiated by President William Ruto.

The association’s secretary general, Richard Ogendo, noted that under the reforms, the price of cane was initially set at Sh6,100 before gradually falling to Sh5,200, Sh5,125, and now Sh4,950.

He blamed the price reduction on the influx of imported sugar, which has flooded the local market.

Ogendo criticized the Ministry of Agriculture, accusing some officials of undermining efforts by President Ruto to boost farmers’ incomes.

The association’s chairman, Soul Busily, warned of protests and occupation of government offices if the directive is not reversed.

Kenya National Federation for Sugarcane Farmers first deputy chairman, Ibrahim Juma, echoed these concerns, stating that the price per ton should not fall below Sh6,000.

He pointed out that local millers’ stores are already full of sugar, and some farmers are protesting because their cane is not being harvested due to millers reaching full capacity.

Juma also called for stricter controls on sugar imports to protect the local industry, urging that importation should only be allowed after careful market research to prevent harm to local farmers and millers.