Troubled Mumias Sugar Company is expected
to kick-start operations on Friday after power supply was reconnected to
the factory. This comes 20 months after the company halted activities
at its factory.
Ponangipalli
Venketa Ramana Rao, the receiver manager appointed by KCB to oversee
revival of the miller, said on Wednesday that a team from Kenya Power
had visited the factory to inspect transformers before reconnecting its
electricity supply.
The
development means that the cash-strapped firm can now embark on ethanol
production. The miller is currently buying bagasse and molasses from the
privately-run Butali Sugar Mills to start production and generate
revenue for buying raw material from farmers.
“We
are set to start ethanol production by Friday as we are finalising
plans to resume milling operations. Everything is so far moving
according to plan,” said Mr Rao.
Management officials at the factory were on Wednesday locked in a meeting to review ongoing preparations for ethanol production.
But
even with the ray of hope, the next hurdle will be sourcing adequate
supply of raw material for milling. This remains a nagging issue for the
receiver manager, who says milling operations are to start in the next
two months depending on availability of cane.
To this end, Mr Rao said he had put in place plans to ensure farmers are paid after delivering cane to the factory.
WOES
The miller's operations were shut down 20 months ago due to a crippling shortage of raw material and dilapidated machinery.
Last Wednesday, suspected arsonists set fire to a section of cane fields belonging to the miller.
Mumias
West Sub-County police commander Peter Katam said unknown people had
set the sugarcane on fire but the blaze was put out by firefighting
teams and members of the public.
The incident was reported on fields F54 and F56 at the nucleus estate.
Head
of Human Resources John Shiundu said the firm has nearly 5,000 tonnes
of cane, ranging from 24-27 months old, in the nucleus farms.
The
miller had earlier indicated that a deal had been struck with Busia
Sugar Company to have the cane harvested to generate revenue to be
ploughed back into kick-starting milling operations.
“The
decision to sell the cane to Busia Sugar Company was reached to avert
losses due to fire incidents by arsonists. Our plan is to have the cane
harvested and generate about Sh20 million which will help fund our
operations,” said Mr Shiundu.
Last
year, the miller reportedly lost 8,040 tonnes of cane worth nearly Sh30
million after suspected arsonists set its cane fields on fire.
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