Cane farmers have protested the latest move by the Agriculture and Food Authority’s Sugar Directorate to reduce the ex-factory price of sugar, after the director of the Sugar Directorate Jude Chesire released new cane price of Sh4,950 per tonne for August, down from the previous Sh5,500 per tonne.

The reduction in price is seen as a significant blow to farmers’ income, given the high production costs and other ongoing industry problems.

Chesire explained that the reduction in cane prices results from high sugar production, which has influenced the ex-factory price of sugar.

“Following the expiry of the interim cane pricing committee and in the absence of a Cabinet secretary to appoint the same, the price of sugarcane per ton in the interim in August is guided at Sh4,950,” said Chesire.

The memo copied to the PS Agriculture, Paul Rono, and AFA DG Bruno Linyuru is dated August 7th and was released a day before the new Agriculture CS Andrew Mwihia was sworn into office at the State House.

The government often sets minimum support prices for sugarcane to ensure farmers receive a fair price for their produce. However, these prices can sometimes be lower than the cost of production, leading to financial strain for farmers.

This depends on sales, supplies, and demands dictated by dynamic domestic and global trends in the sugar market reliant on the production gap. This decision to lower cane prices per ton has sparked protests among cane farmers, who demand no less than Sh5,500 per ton.

Led by Killion Osur, the head of the Kenya Federation of Sugarcane Farmers, they voiced strong opposition to the cane price cuts. Osur and his fellow farmers argued that the reduced cane price would significantly impact their livelihoods, making it difficult for them to sustain their farming operations and dissuading them from investing heavily in growing more cane. “We are going to mobilise cane farmers to reject the new price set by the regulator,” said Osur.

Meanwhile, the millers are discreetly pleased. Association chair Jayanti Patel was cagey about commenting on the new pricing set, opting to go mute.