Cane prices unchanged as team’s mandate ends

cane

A crane offloads sugarcane from a tractor. FILE PHOTO | NMG

Sugarcane prices have remained unchanged at Sh4,584 per tonne since last year after the term of the committee mandated to review the amounts paid to farmers expired in November.

The Sugar Cane Pricing Committee is charged with the task of reviewing prices every three months, however, its term lapsed three months ago and has not been renewed.

Head of the Sugar Directorate Wills Audi confirmed that the prices have not been reviewed since November.

“We have not reviewed the cane prices and farmers are still being paid Sh4,584 for a tonne as the last price that we had set before the term of the team expired,” said Mr Audi.

He said the pricing committee as constituted now is an interim team with its mandate running for six months and is renewed by Agriculture and Food Authority (AFA).

The official says AFA is working on renewing the term of the nine member-committee with a new price review expected soon.

To determine the cost of sugarcane, the team uses prevailing sugar prices and the ex-factory rates to determine the price per tonne to ensure equitable returns to growers and millers.

The representation of the committee cuts across various entities that include AFA, the Ministry of Agriculture, farmers, millers and sugar-growing counties.

Farmers are likely to benefit if a review is done within the next month given the high sugar prices for the past five months.

The ex-factory and shelf prices have been high since October last year with the 50-kilo bag going for Sh5,600 at factory gates and retailing at Sh312 for a two-kilo packet on the shelves.

The higher rates have been occasioned by a shortage of the commodity both in Kenya and other regional countries within the Common Market for Eastern and Southern Africa.

*Story updated to correct price per tonne to Sh4,584 instead of Sh5,384 earlier stated.

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