The State committee met last Thursday and agreed to reduce the amount paid to growers following a decline in consumer prices.
But the move will not go down well with farmers who will now have to earn less.
This comes just days after millers opted to reduce the prices from Sh4,025 to Sh3,800 after the committee delayed the action.
The price is pegged on the consumer cost of sugar in the market.
The Sugar Pricing Committee has cut the price of a tonne of cane by Sh325, to the relief of millers who have been pushing for the action for the last couple of months.
The State committee met last Thursday and agreed to reduce the amount paid to growers following a decline in consumer prices.
But the move will not go down well with farmers who will now have to earn less.
“Following the Cane Pricing Committee meeting and in line with the provisions of Section 40 (2)(s) of the Crops Act 2013, … the Committee has set cane prices at Sh3,700 per tonne,” said Agriculture and Food Authority director general Alfred Busolo.
This comes just days after millers opted to reduce the prices from Sh4,025 to Sh3,800 after the committee delayed the action. The price is pegged on the consumer cost of sugar in the market.
There has been a decline in shelf price since August last year and it currently stands at Sh120 a kilo from Sh150 in May.
Millers have been grappling with unmoving stocks due to stiff competition from cheaper imported sweetener.
The ex-factory price of the commodity has been on the decline since mid-last year following increase of duty-free sugar in the country that stood at over 900,000 tonnes between May and November.
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