Control Importation of Industrial Sugar Miller tells State

By Wakhungu Andaje

Failure by the government to ensure prompt constitution and operations of the Kenya sugar board (KSB) directorate has given way to imported industrial sugar being sold to retail consumers.

The lack of policies to curtail and control the importation and usage of industrial sugar in Kenya majorly affect cane pricing and production within the local milling factories.

While presenting the milling plant views affecting sugar sector in the country, Butali sugar mills Managing Director Sanjay Patel told the trade, industry and cooperatives parliamentary committee led by Ikolomani Mp Bernard Shinali that Butali as other millers’ production was being affected by the uncontrolled and unmonitored importation of white sugar (ICUMSA 45) meant for industrial purposes but which later ends up on the Kenyan retail shelves selling at a cheaper price compared to the common mild brown sugar which sells more.

The managing director informed the committee which also comprised of farmers’ representatives that the sugar sector in the country will only be streamlined if the proposed Kenya sugar board body is fully functional by allowing the stalled regional directors’ elections be conducted.

Sanjay expressed concerns over the many litigations being filed in court over the Kenya sugar board directorship elections as stalling the constitution and implementation of the organization that will control the sugar sector within the country.

The purported Kenya sugar board directorship is bound to take place countrywide in five catchment areas including: Upper Western, Lower Western, Southern, Central and Coastal catchment areas where each region will have to elect their director to represent the cane farmers on the Kenya sugar board.

The management further did not agree with the committee suggestion to have parliament appoint (KSB directors) farmer representatives noting that it was solemnly the mandate of the farmers to elect their own.

The Butali director revealed that the importation and unmonitored usage of industrial sugar was not only hurting the millers but also the cane farmers as permitting, harvesting and pricing per ton will be adversely affected as the white sugar on shelves sells at a lesser price.

“I want to tell this committee here that it is not the (Common market for Eastern and Southern Africa) (COMESA) sugar that is affecting our sugar sector, it is the industrial white sugar that is used for pharmaceuticals and industrial productions that is being diverted by the importers to flood the local market and unless stringent measures are put in place to control its importation, we will keep on blaming each other why the sector is not growing” he stated.

He called on the trade committee to ensure that these unfair practices affecting cane farmers and millers at large should be addressed through the push to have the Kenya sugar board elections hailed very soon.

The manager also raised concerns over the high cane pricing against sugar prices saying the millers were not making much compared to the infiltrated sugar market suggesting for the safeguarding of the sector as many farmers relied on their services.

“Butali sugar millers has between 42,000-44,000 farmers,700,000-800,000 Kenyans depending on it as well as offering 2,400 direct employment with 36,000 school going children attached to it, nationally, sugar cane sustains approximately 7-8 million Kenyans and should be safeguarded against unnecessary exploitations” he added.

The miller which is now crushing 2,700 tons of sugar daily further asked the government to restrict the repacking of sugar into small quantities (250-500gms and 1kgs,) as it was also encouraging illegal importation of cheap sugar.

“We are seeing supermarket selling repackaged and sugar bearing their names and yet they are not millers, where do they get the sugar, let the repackaging be done from the factory and not by supermarkets and for our consumers be warned that the originality and standard of the commodity they’re purchasing for their home use is unknown hence could be hazardous for their lives and is also killing our supply chain into the market too.”

He said if the government properly regulates the sugar sector within the country, many Kenyans will start reaping huge from the practice.

The Miller also urged the government to allow them offer subsidized cane fertilizer to farmers either directly or through the Kenya national trading corporation (KNTC).

“Let the government of Kenya remit the subsidized fertilizers (if there is) to millers who will then be able to distribute to farmers on better and agreeable terms that is workable between the miller and farmers as the current pricing of Ksh.5, 000 is still high for our farmers to raise the whole cash since many are small scale cane planters” said Sanjay.

At the same time he observed that the cost of sugar production in the country was high compared to Uganda and asked the government to regulate together with the importation of farm machinery.

The Butali sugarcane farmers association chairman William Kopi representing the farmers raised concerns over the licensing of mushrooming sugar factories calling for government interventions as already the sector was lacking enough raw materials to crush.

“We have 15 sugar factories within Kenya and which are scrambling for raw materials why is the government allowing new factories to be set up now?, let us first satisfy the existing demand before we embark on opening new ones.”

Kopi also opposed the transfer of sugar levy (cess funds) to the Kenya agribusiness development corporation (KADCO) limited and instead the funds be channeled back farmers to develop infrastructure in cane growing zones.

“We want the resuscitation of the grass root cess committee board to be managing these funds as they are the ones who will identify which infrastructure at the ground level needs to be rehabilitated as currently the funds are being dumped at the county and misused as there is no proper channel to wire them back to the farmers hence no tangible development at the grass root, Kopi wondered.”

Malava Mp David Ndakwa who was host, applauded the miller for considering the 70% local employment threshold and also its corporate social responsibility (CSR) besides its 7day payment schedule to farmers harvested canes.

The chairman of the Trade committee Bernard Shinali confirmed that the 15 member team was traversing the sugar growing region to interact and address sensitive issues within the sugar sector where the views picked will be forwarded for reviewing in parliament.

He assured the miller that strict measures on sugar importation will be enforced with the latest being on the docked Brazilian vessel at the port of Mombasa alleged to be ferrying sugar into the country.

The government is taking sugar importation matters very seriously since Kenya is producing its own sugar and the remaining deficit which is being imported ( white sugar for industrial use) should be brought in using the correct means and procedure to serve the intended purpose.

"We have a team going around the country to collect views from sugar cane stakeholders after which we shall compile and review all of them before giving our substantive solution through a parliament report” Shinali assured.