The prices of raw cane have been increased by 16% above the government-set price as Kenya is facing a shortage of sugarcane, reports Business Daily Africa.
The Sugar Directorate has raised concerns over the harvesting of the cane and stated that the total volume of sugar milled last month dropped 40% to 546,000 tonnes as compared to 908,000 in January 2023.
The competition among the millers to attract cane for crushing has led to a hike in the price of cane from Sh4, 584 per tonne fixed by the sugar directorate to Sh5, 250.
“Across all the zones the sugar industry is facing an acute cane shortage as a result the sugar mills have reduced their operational capacity lowering the sugar production. Private Mills are hiking cane prices to attract the sweetener for crushing,” said the directorate.
The millers are buying the cane that has not attained the harvesting age and it would affect the production as well as lower farmers’ income, it said.
