Two Busia sugar companies have differed over plans to re-introduce cane zoning of sugar factories amid a fierce battle over control of cane in the region.
Busia Sugar Industry (BSI) and farmers contracted by the company supports zoning whereas its rival West Kenya Sugar Company strongly opposes zoning.
Hussain Kaka, the operations manager at Busia Sugar Industry has accused West Kenya of having a hidden agenda.
He alleged that the rival miller was trying to monopolise the industry and to kill other millers by not opting for regional zoning.
BSI supports zoning on regional basis, due to numerous advantages it comes along with in helping revive the struggling sugar sector
Hussain Kaka, Operations Manger, Busia Sugar Industry
West Kenya farmers, on the other hand, insist that they should have freedom and liberty to sell their produce where they wish if at all the industry is to be revived.
The national government through the Ministry of Agriculture has also been called to support cane farmers to ensure that sugar levy is allocated.
Led by the chairman Kenya National Federation of Sugarcane farmers Ibrahim Juma, West Kenya farmers aired their dissatisfaction before the sugar Industry Taskforce committee that oversees the challenges facing cane farmers.
Over 300 cane farmers held a sitting with the task force at Bukhalama Resort, Butula sub county before proceeding to Busia Sugar Industry.
Juma said that policies should be put in place in a bid to have a level playground for all.
“It is like a football match with two strong teams but no referee, we, therefore, want regulations to be put in place for fair play,” Juma noted.
He added, “The other major problem is that farmers rarely get their payment on time, other government headed millers take up to 18 months to have farmers paid.”
Juma suggested that farmers should be paid within seven days.
He said that a special committee should also be formed to look at ways of importing sugar into the country.
The committee should comprise of one or two farmers, representatives from the national and county government, and the miller according to the farmers’ spokesperson.
He suggested that the Sugar Development Levy (SDL) be re-introduced and be properly managed to enable farmers to get loans at a lower interest rate of per cent to improve on yields and maximize production.
The industry is crippled by weak legal frameworks and enforcement policies, imports dependency and unregulated duty-free imports from non-Comesa countries.
His sentiments were echoed by the branch chairman Kenya National Federation of Sugarcane Farmers Anthony Okwara who said that the millers should harvest and transport the cane on time preferably within 24 hours to avoid losses incurred by farmers.
He said the fund will go a long way in helping millers with rehabilitation, improving infrastructure and sugarcane development.
“The move by the government to crap the Sugar Development Levy, which offered loans to both farmers and millers to develop sugarcane, has worsened the problem of insufficient raw material,” Juma noted.
Minority Leader in the Busia County Assembly Felix Omanyo, said that the cost of doing business in Kenya should be reviewed as it has resulted in the closure of most businesses in Kenya.
He added that as leaders of Busia county, they do not support the monopoly of business hence say no to zoning.
Omanyo said Agriculture was a devolved function and the headquarters for sugar should be moved from Nairobi to Kisumu to serve the Western and Nyanza regions.
A representative of Olepito farmers, David Odhiambo Wanzala said that the pricing of sugarcane should be based on the demand and supply rule and should be harmonized.
“Pricing of sugar should be determined by the price of sugar in the market where the government should formulate and regulate the policy,” he said.
Another farmer, Peter Odima stressed the need for farmers to have liberty over their produce and decide where to sell their cane.
Nambale MP John Bunyasi told millers tó ensure that they localise value addition for farmers to reap big and addition and production of industrial alcohol and electricity
The team leader Patrick Obutia said that the final report should be submitted by the end of March this year for recommendations.
He said that their main aim is to ensure revival of the sector and ensure that it is uniform across.
Among the six areas discussed were policy and legal framework, challenges facing the sector, views on importation and suitable intervention to revitalize the mills.
West Kenya Sugar Company Jaswant Rai said that he highly opposes regional zoning of cane and called upon the task force to look into the pricing of sugarcane.
Rai warned that the task force should not try to come up with regulations which are not equitable and fair, everyone has their right, whether a small scale or large scale farmer.