Sugar Industry:State confusion not sweet news for sugar sector

Sugar. A wave of confusion and uncertainty has descended on the sugar sector owing to conflict in roles of the line ministries of Trade, Treasury and Agriculture that are all involved in the day-to-day functions of the industry.

A disjointed decision making process among Government ministries involved in the sugar industry could threaten reforms in the key sub-sector ahead of its full liberalisation in 2012, analysts have warned.

In a worrying turn of events a wave of confusion and uncertainty has descended on the sub-sector owing to conflict in roles of the line ministries of Trade, Treasury and Agriculture that are all involved in the day-to-day functions of the industry.

“There seems to be a major disconnect in coordination of roles. Every ministry is trying to assert its authority in line with its mandate but without consultation there comes an image of power struggle which is not good for sound reforms,” Peter Kegode, an industry analyst said.

In the latest incident that has revealed deep rooted disjointedness in decision making, Agriculture minister William Ruto has found himself at loggerheads with the A-G over proposals to gazette new rules for the local sugar market including imports under preferential terms from the Common Market Eastern and Southern Africa (Comesa).

The minister had envisaged to introduce new regulations including auctioning of import rights to ensure transparency and efficient shipment of consignments of sugar into the local market without risks of flooding of out lets.

The Government’s chief legal advisor however declared the plans “illegal” arguing that they could provoke major trade wars with Kenya’s largest market.

source:bdaafrica