Farmers have received a major boost after the government increased purchase prices by Sh279 per tonne.
The increased prices follows a review by the Sugar cane Pricing Committee that is charged with reviewing cane prices in line with market sugar prices.
Agriculture Cabinet Secretary Peter Munya directed sugar millers to adhere to the new prices while making payments to the farmers.
“Any farmer being paid less should report to the Agriculture and Food Authority for redress,” read the statement.
Having considered the prevailing ex-factory sugar prices over the past three months (August – October 2021) and the current upward trend in the price of sugar, the committee resolved to base the cane price on the average ex-factory sugar price of Sh4,770.00 per 50kg bag for October 2021.
The Committee, therefore, approved an increase in the price of cane from the current Sh3,833.00 per tonne to Sh4,112.00 per tonne, effective November 18th, 2021.
According to Munya, the sugar industry has witnessed a steady increase in sugar production due to enhanced investments by both the Government and private sector players.
“Cumulatively, sugar production in January – October 2021 was 577,807 tonnes compared to 514,727 tonnes produced in the same period last year, indicating a 12 per cent increase,” he said.
Sugar production increase is due to improved availability of sugar cane in all sugar growing areas attributed to favourable weather conditions and improved cane prices.
The projected sugar production in 2021 is estimated at over 660,000 metric tonnes.
The Crops (Sugar) (General) Regulations, 2020 specifies the various requirements for contracts/agreements between cane growers and millers, handling, and supply of sugarcane.
The payment for cane on the basis of set prices shall be done weekly.
