John Shilitsa

5 September 2010

Nairobi — The proposed new cane pricing system based on sucrose content as opposed to cane tonnage will only be implemented if a planned pilot project proves successful, the Kenya Sugar Board (KSB) has said.

KSB is in the process of acquiring sucrose testing equipment worth about Sh140 million to be installed at the Nzoia Sugar Company.

Initial tests will guide the board on whether or not to roll out the new pricing system full throttle, said the board's director in charge of the Sugar Development Fund, Mr Billy Wanjala.

"If our tests at Nzoia are a success story, the board shall recommend the new system and sugar milling firms will be expected to procure equipment and implement the new cane pricing order within a stipulated time," said Mr Wanjala while responding to reactions by farmers over the board's quest to introduce the system.

But farmers argued that cane varieties being grown in the area would not be ideal for the new pricing system because they had low sucrose content.

Mr Wanjala said KSB had already put measures in place to ensure that cane growers are supplied with certified early maturing seed cane variety with high sucrose content. "We have asked the Kenya Sugar Research Institute to provide suitable seed cane to all farmers in sugarcane growing areas."

The only challenge will be on sugar milling firms to expand capacity before introduction of the early maturing cane, because the anticipated excess production could lead to late harvests at the expense of the farmers.

He added that farmers must remain patient as the board addresses issues that could hamper the project, adding that if successfully implemented the sucrose content pricing system will benefit both farmers and millers.

Already, legislators from the area have opposed the system, arguing that it would exploit farmers and enrich millers instead. They urged KSB to divert the Sh140 million into development of sugarcane project.