Kenya: Give Cane Farmers More, Oparanya Advises Millers

PLANNING and Vision 2030 minister Wycliffe Oparanya has told sugar millers to review their contracts with farmers to ensure they benefit from new products as the firms diversify products to remain afloat in a liberalised market. "Although the Ethanol Act has not yet been passed by Parliament, millers should rewrite their contract with farmer to ensure the farmers benefit fully from the production and sale of ethanol and electricity because the two products are by-products of sugar cane," said the minister. "Though the current Act does not provide for payment to farmers for the new products, we want millers to begin preparing by reviewing their contracts as we wait for new laws to be in place. This will make sugarcane farming more profitable to farmers and help fight poverty," he said.

He said it was unfair that while sugar millers are diversifying into co-generation projects, payments to farmers is still pegged on sugar alone and earning nothing from the sale of electricity, ethanol and bottled water. "The government will continue to support sugar processing companies to increase operational efficiency through research and development of new high yielding varieties, research in diversifies sugar industry products, encourage fair competition and periodic review of relevant policies and regulations to discourage dumping from regional markets," said Oparanya.

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