Sugar industry feature By Leo Oder5a Omolo in Kisumu City
Sugar millers in West Kenyan have huge stockpile of unsold produce in their warehouses.
The millers have reported that they are unable to sell the commodities as the local market is currently flooded with cheap sugar imported from Brazil and Egypt finding its way into Kenyan market via unscrupulous folk working in cohort with sugar barons who are reportedly importing cheap sugar from foreign sources. The sugar barons are said to be having connections with the powerful government officials in high places.
The traders in question are the same people responsible for poor cane prices but the Kenya Board, which is the industry regulating body is unable to intervene.
Farmers and millers have appealed to the KSB to come out of its slumber and rescue the sugar industry from totally collapsing.
Frustrated Millers are now said to be in the process of declaring thousands at their workers redundant because of sugar worth millions which the companies were unable to sell in the local market which is currently flooded with imparities sugar. The situation is so pathetic as it threatens to drive Kenyan workers in the sugar industry out of their jobs while we are exporting our money to benefit came farmers and workers in Brazil, Egypt and other sugar producing foreign countries.
Perhaps the Jubilee government headed by the hard working President Uhuru Muigai Kenyatta is kept in the dark about multiple arts of economic sabotage through the malfeance the dumping from regions outside COMESA .
A structure deficit exists in COMESA with their surplus from domestic sources and weak compliance for that portion destined to Kenya.
There is urgent need for Kenya key players in the industry to lobby for the exclusion of sugar from rules of origin teamwork and only all our COMESA FTA countries with surplus trafrom domestic production to expert to Kenya.
SNC of Egypt, a government corporation, imparts on government authorization from Brazil over one million metric tones annually for local market supply stabilization and the export the sugarcane into COMESA FTA under rules origin; a glaring loophole must transfer economic welfare to Brazil and producers at the expense
Kenyan sugar cane farmers in the Lake region and western Kenya SIIC of Egypt, a government corporation, imports an government authorization to aim Brazil over one million metric tones annually for it local market supply stabilization and le-export the same quantity into COMESA FTA under rule of origin, a glaring loophole that transfers economic welfare to the Brazilians producers at the expense of the Kenyan sugar cane farmers in the Lake region and in Western province.
It is worth to be remembered that. Egypt is pursuing a mixed economic model of country and free market approaches.
Tax evasion, which is so rampant among private millers who under declare production and sell sugar-un-invoiced. Immigration breaches on work permits through the use of low skilled migrant labor from India and Paikstan…is prevalent in some privately owned sugar mills………some process sugar millers who under dealer production and sell sugar uninvoiced immigration measures on work per unit through the use of low skilled migrant labour train Pakistan and India is prevalent in privately owned sugar mills.
These breaches of fair labour practices allow transfer across traction mixing through inflated repatriated remuneration and contribute to you unemployment in the country
Transfer prices for imported parts and materials act through our country’s own incorporated supplies companies in the UK and India.
Dumped sugar from UAE and Somalia, India, Brazil is fueling crime through financing it. Contraband dumped sugar is used to under through “duty money.”
Incorporate businessmen from Somalia community posing as large sugar traders are the one funding crime from sugar trade, which 15 million Kenyans who depends on locally produced sugar supply chain both directly and indirect arein danger of t of further impoverishment if order is not restored.
Sugarcane farmers / producers have suffered a deadline in farm produce prices from Kshs. 4,300 to Kshs. 3,200 per t0n of produces in the last 18 months and is in danger of further declare to Kshs. 2,500
Unprecedented counterfeiting of packaging for leading sugar brands of Mumias Sugar Company and Sony Sugar is blatantly being carried out by contrabands and sugar traders dumping the non-COMESA sugar in local market.
The produce packed in counterfeit packaging of these two leading companies are openly sold in the coastal towns, North Eastern and part of Eastern, Rift valley and Mount Kenya regions of Kenya. The government therefore should out a thorough investigation about the source of repacked and trended sugar calling in the main supermarket outlets and tact for wholesomeness.
The government should also address public health concerning that radioactive waste and harmful heavy metal could be released to un-susceptive consumer public in Kenya.
Surplus production stocks from prior years, kept in open shortage in countries such as Brazil, India one reproduce of choice for dumping to countries with weak regulatory regimes. The open manner of handling could expose Kenyan Public Health concerns since such sugar is meant for further KRA and KEB’s are powerless in contending the vice involving trip money in Kick back.