Workers call for open guidelines in issuance of sugar import licences

Workers have demanded openness and wide consultations over sugar imports even as Agriculture ministry continues to issue import licences to plug production shortfall.

The country is grappling with an annual sugar supply deficit estimated at between 200,000 and 250,000 tonnes.

The Sugar Directorate has been issuing import licences to traders who ordered 9,000 tonnes of the commodity in August and about 15,000 tonnes in September.

Kenya Union of Sugar Plantation and Allied Workers secretary-general Francis Wangara urged the industry regulator to follow proper procedure of importing sugar by ensuring transparency and involving stakeholders such as millers.

“Contracted persons (importers) should not be allowed to ship in sugar beyond the amount required because that will flood the market,” he said.

However, Mr Wangara said, local millers had not been able to bridge the supply gap because they do not have adequate sugar cane.

He told the sugar Directorate to Brace for court battle if it continues to import sugar without consulting industry players.

“It is only South Nyanza factory which has mature cane to crush. All the other millers are crying of shortage. The deficit has led to increase in the price,” he said.

Mr Wangara said union would hold the government to account should cheap sugar imports flood the market.

“There is a specific quantity that we need to import so that the prices are brought down,” he said, adding that Kenya consumes about 800,000 metric tonnes and produces about 600,000 tonnes.

READ: Sugar imports rise 67pc on low output from local factories

“Sugar should flow into the country in line with the signed treaties, protocols and transparency.”

Kenya Sugarcane Growers Association secretary-general Richard Ogendo, however, urged the government to revive the collapsed millers to curb the shortage.

“With or without deficit, allowing sugar imports into the country at a time that local factories are down is slap on the face of the country’s economy,” he said.

Mr Ogendo said there was a need to recognise the role played by farmers to ensure sustainable production of sugar cane because they are key stakeholders.

“The government should support farmers by giving loans so that they produce more to give factories raw material to crush,” he said.