MPs want debts owed by sugar millers written off
Tractors deliver cane for milling at Butali Sugar Mills in Kakamega. MPs want the government to write off debts owed by public sugar companies and also reintroduce the sugar development fund to help in the revival of the ailing sugar sub-sector. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
Mr Owino said if the government was concerned about the plight of cane farmers, it must ensure that contracts with millers were honoured.
He cited high cost of sugar production, cane poaching, low productivity and heavy indebtedness as among the problems in the sub-sector.
The MPs challenged the government to immediately gazette sugar regulations on licensing of sugar factories and compliance requirements.
MPs want the government to write off debts owed by public sugar companies and also reintroduce the sugar development fund to help in the revival of the ailing sugar sub-sector.
The National Assembly Wednesday approved a motion sponsored by Awendo MP Walter Owino that also seeks to puss the government to review regulations regarding licensing of sugar factories.
They also want adequacy of cane supply as a condition for licensing sugar millers.
Mr Owino said if the government was concerned about the plight of cane farmers, it must ensure that contracts with millers were honoured.
He cited high cost of sugar production, cane poaching, low productivity and heavy indebtedness as among the problems in the sub-sector.
LIVLIHOOD
“Most people in my constituency depend entirely on sugarcane for their livelihood,” said Mr Owino.
“They are cane growers, millers and also work in the sugar factories and are directly affected by challenges facing the industry.”
The MP noted that, due to poor handling of problems faced by cane farmers, production of sugarcane in the 15 counties that grow it has declined from 50,000 metric tonnes per month to below 15,000 metric tonnes.
The MP accused private millers of poaching sugarcane from farmers hence having a negative impact on the State owned millers.
The move he said has resulted to shutting down of milling plants, employee layoffs and weakening of balance sheets of public-owned mills.
SUGAR LICENSING
The MPs challenged the government to immediately gazette sugar regulations on licensing of sugar factories and compliance requirements, revive the sugar tribunal to handle contract disputes and clarify the role of the Agriculture Food Authority (AFA) and county governments in the licensing of sugarcane production.
The MPs want the government to relook at the proposed sale of five State-owned millers – Sony, Chemelil, Nzoia, Muhoroni and Miwani – to ensure that the interest of growers and workers are properly taken care.
Nyando MP Jared Okello said sugarcane barons must be removed from the sugar distribution if the cane industry is to be revived.
“We must remove sugar barons from the chain of sugar distribution. Our factories are dying because of cheap sugar [imports]. Some private sugar millers are also doubling up as sugar importers and therefore have no need for the farmer,” Mr Okello said.
