A government decree that sugar companies pay sugarcane farmers 18 per cent of the value of the cane monthly for late harvest has drawn mixed reactions from farmers’ unions.
The Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) has greeted the move saying it will discipline millers who often delay harvesting.
KUSPAW Secretary General Francis Wangara said in a phone interview the move by Agriculture Fisheries and Food Authority (AFFA) will protect small-holder farmers whose rain-fed schemes provide much of the cane crushed in state-owned millers.
The directive which comes into force July 1, will pile more pressure on sugar millers that are currently struggling to pay farmers.
The directive allows an additional six months period after cane maturity at 18 months for most cane varieties before facing penalty.
“Cane farmers invest a lot into the crops and it is therefore only proper that the millers are penalised if they fail to harvest in time from contacted farmers,” said Mr Wangara.
He added that millers have been irregular in harvesting cane and paying for delivered crops, making cane farming an undesirable venture for outgrowers.
KENSFU deputy secretary Atiang’ Atyang’ however said that they would be tabling to the Attorney General stiffer regulations to increase the interest to 30 per cent.
“Some of the companies have been declared insolvent, we do not want to be tied to millers that cannot afford to pay farmers,” he said in reference to Chemeil Sugar that owes farmers over Sh250 million in arrears,
"If they cannot pay for cane delivered, even that interest they will be able to pay.”