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Commodities

Sugar millers’ bid to cut price of cane derailed

Millers want cane prices reduced to Sh3,000 per tonne, saying the current costs make their business uncompetitive.  FILE PHOTO | NMG
Millers want cane prices reduced to Sh3,000 per tonne, saying the current costs make their business uncompetitive. FILE PHOTO | NMG 

Millers will have to wait longer for the price of sugarcane to be reviewed after governors from growing zones rejected their application to cut the cost of cane.

The governors met with millers and farmers’ representatives in Kisumu last week and opposed the petition to reduce the price from Sh4,025 a tonne to Sh3,000. The factories made the demand following a sharp decline in shelf price of sugar.

The move saw the meeting scheduled by the government Sugar Pricing Committee meant to be held this month pushed to December.

Ex-factory price for a tonne has fallen to Sh3,800 from Sh6,000 in May.

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