Source: Daily Nation
Writer: Victor Raballa
Victor Raballa’s article in the Daily Nation delves into the controversy surrounding the recent decision by the Sugarcane Pricing Committee to reduce the price of sugarcane to KSh. 4,950 per tonne for August 2024. This reduction, down from KSh. 6,100 per tonne in February, has led to widespread dissatisfaction among sugarcane farmers, who are now threatening to boycott supplies to factories beginning on August 13, 2024.
The article explains that the price cut was implemented by the Sugarcane Pricing Committee, an autonomous body comprising representatives from the Agriculture and Food Authority (AFA), the Ministry of Agriculture, farmers, millers, and sugar-producing counties. The committee justified the price reduction by citing an oversupply of sugarcane due to favorable weather conditions and the government's fertilizer subsidy, which has led to a sharp increase in cane production. The resultant glut in the market has driven down the price of raw cane, providing relief to consumers through lower sugar prices but significantly impacting farmers' earnings.
Farmers, particularly those represented by the Kenya National Federation of Sugarcane Farmers (KNFSF), have strongly opposed the new pricing, arguing that it fails to account for the rising costs of production and does not adequately compensate them for their efforts. Stephen Ole Narupa, KNFSF's national treasurer, has accused the government and the AFA of failing to protect local farmers, especially in light of the increased competition from imported sugar. He suggests that the price reduction will exacerbate the challenges faced by farmers, potentially leading to long-term damage to the sector.
The article also outlines the potential repercussions of the farmers’ threatened boycott, which could lead to disruptions in sugar production and supply, creating market instability and possible price spikes in the future. The standoff highlights the delicate balance between ensuring fair producer prices and maintaining consumer affordability in a highly competitive and fluctuating market.
Opinion: While the reduction in sugarcane prices may be justified as a short-term measure to address the current oversupply and stabilize the market, it is crucial that the government and the Sugarcane Pricing Committee implement this reduction carefully and strategically. The lower prices help prevent a surplus from depressing the market further and provide immediate relief to consumers. However, this measure must be accompanied by clear communication and support strategies for farmers, such as subsidies or temporary financial assistance, to mitigate the impact on their incomes. Ensuring that this price reduction is a short-term solution, rather than a long-term trend, will be vital in maintaining the delicate balance between sustaining farmer livelihoods and protecting consumer interests.