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Friday, January 3, 2014

Farmers raise red flag as Comesa safeguards end

PHOTO | FILE A tractor transports sugarcane.

PHOTO | FILE A tractor transports sugarcane.  NATION MEDIA GROUP
By MOSES ODHIAMBO
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Sugarcane farmers have raised concern over the high cost of cane production in Kenya despite the country’s commitment to lift COMESA safeguards in March.

High cost of farm inputs, exploitation by millers, expensive credit and poor execution of laws governing the business have seen farmers paint a grim picture of the industry this year.

“These persistent problems have led to high levels of poverty, HIV/Aids prevalence and high mortality rate among communities in sugarcane growing areas because of the dismal returns,” said the Kenya National Sugarcane Farmers Union secretary-general Simon Wesechere.

The farmers also cite poor harvesting practices, weak administration of cane zoning, corruption and lack of extension services as other problems crippling the industry.

Speaking in Kisumu, Mr Wesechere said that if these challenges are not dealt with, many farmers could opt out of the business in droves and venture into other crops.

The union boss raised concern that the current financing scheme through the Agricultural Finance Corporation (AFC) was exorbitant.

“We demand that the requirements under the AFC be reviewed to accommodate the small-scale farmers including women who have had their net income severed by the expensive credit,” he said.
The farmers noted that financing of sugarcane development through the millers was equally costly: “We demand that millers stick to their core business of milling and leave service provision to out-growers,” Mr Wesechere said.

The union accused the government of dishonesty in the implementation of Comesa safeguards since it was signed in 2002. The farmers complained of being subjected to competition with countries that are already enjoying derivatives of the bloc’s agreement.

“How can we compete fairly with the Comesa countries where the average cost of (sugar) production is between Sh10,000 to Sh15,000 when ours is as high as Sh65,000 per tonne?” said Mr Wesechere.
The union also accused Kenya Sugar Board of not following privatisation rules pointing out the sham manner in which Muhoroni and Miwani sugar industries receivership has been carried out.

Led by Mumias sugar CEO Peter Kebati millers blamed the challenges facing farmers on the entry of illegal sugar into the local market.

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