Mumias to pay more for cane deliveries

Farmers affiliated to Mumias Sugar Company will earn more for cane deliveries after the miller increased its rates. Growers and a section of the Kenya Sugar Board had put company on the spot over its failure to pay a minimum of Sh2,500 for every tonne of cane delivered to the miller.

However last week, the sugar firm issued a payment schedule indicating that they would revise the pay beginning this month upwards to Sh2,560.

Speaking to the Nation at the weekend, KSB chairman Okoth Obado welcomed the decision noting that it was in line with the farmer’s requests. “That is a positive move by the company to increase payment of sugarcane delivered to them by farmers,” said Mr Obado.

Create cracks

The row on pricing had threatened to create cracks within the board as directors seemed to be divided over the formulation of the Sh2,500 buying price.

However, proponents of the payment insisted that the amount was based on all factors of production employed both at the farm and industry level as well as the economics of scale.

According to Mr Obado, adoption of the pricing by the listed sugar miller was now in tune with what the rest of the firms were paying. “We are only hoping that this price lasts and will not just be implemented for a short period then be done away with,” said Mr Obado.

Controversy over pricing of sugar cane delivered is not a new thing to the industry. It first came to the fore in 2007 when the then Agriculture minister Kipruto Kirwa issued the directive. As would have been expected, millers were up in arms against the decision but have since adopted it.

source: nation.co.ke