Business and Economic News By Leo Odera Omolo In Kisumu City.
OPENING up the Kenyan Sugar Industry to private participation without prior arrangement of adequate policed guidelines, will open the gate to cheaper sugar imports from COMESA countries and instead only destroy whatever chance of sugarcane farmers of fighting their scourge of abject poverty.
This was one of the dozens of resolutions passed by over 400 sugarcane farmers from three cane growing zones in Western Province, Nyando and South Nyanza sugar belts.
The sugarcane farmers who were in attendance of a one day workshop held at the New Kisumu Hotel. The purpose of this workshop which was, jointly organized by theSugar Campaign for Change {SUCAM} and the Kenya National Sugarcane Growers Union {KENSGU}.
The purpose of the workshop was meant for the farmers to share views with some Members of Parliament, particularly those legislators whose constituencies are located in the sugarcane growing zones about their concerns about the on-going privatization process, though the MPs turned down the farmers invitation, the meeting went ahead and agreed to do one thing..
1} To seek for an urgent appointment for an audience with the Prime Minister Raila Odinga in order to share with him the farmers views over the contentious issues affecting the sugar sub-sector of the economy.
2}The farmers unanimous agreed that the costs of implementing reforms in the sugar industry are far less than the cost of turmoil that would engulf the sugar belts in Kenya should the sugar industry die.
3}The costs of implementing reforms in the sugar industry are far much less than the costs that would be required to enable the six million people who are the dependants of the sugar sub-sector to transition and transformed themselves into alternative source of livelihood.
4} Farmers are demanding that the government as a matter of utmost urgency to undertake debt analysis including the farmers claims in totality for upfront settlement before the closure of the divestiture process.
5} Sugarcane farmers requested that the government should consider the possibility of waiving debts owed by cane farmers in terms of loans during the debt restructuring programme as most of these debts are due to delayed or non harvesting of cane developed by these loans.
6}The government should facilitate farms access to affordability credit in addition to SDF with directive on the interests rates.
7}The farmers resolved that, before the conclusion of the disposal of sugar firms, the government should give directive to Growers and Millers to develop a cane payment system that facilitates the sharing of revenues derived from cane processing.
8}The farmers also resolved that the composition of pricing committee should be reviewed to reviewed to ensure fair and balanced representation of stakeholders especially, sugar cane farmers. In addition the farmers are demanding for the government to facilitate two experts as technical advisers during the pricing negotiations.
9}It was further resolved that the government should establish sugarcane testing unit to ensure that cane farmers are protected during the sucrose payment system. And that the government should revitalize out growers institutions to enable them to provide effective services to cane farmers.
The meeting further urged the government to consider as a matter of urgency to institute the farmers apex body to ensure respect to farmers rights. And in addition to this they urged the government to establish what they termed as “Out-Growers Mutual Fund and to allow farmers to pay for4five years with the delivery of 5 per cent to access and acquire shareholding equity in the sugar firms. And that it should gazette the sugar industry agreements.
He farmers further urged the government not to allow the sugarcane farmers to be punished without putting adequate policy and legal frame work in place to manage a liberalized sugar sub-sector, in which six million lives of Kenyans are at stake.
They insisted that the sugar industry has been destroyed due to excessive corruption and bad management and told the government not to transfer the sugarcane farmers from this state to another exploitative nature of capitalists, but to give them maximum protection and a fair deal.
In another key note presentation to the workshop, Eng. Phillip Makabong’o who is the KENSGU’s director of industrial dispute and research said the sugar industry in Kenya is viable and holds the future in the country’s economy if it is well managed.
“Cane farmers have consistently disputed the manner the industry is being run and managed, ranging from poor agreement, acts, regulations, corruption, mismanagement, embezzlement, political patronage and neglect to privatization.
Other pressing problems which the government should look into, said Eng. Makabong’o,it is important to address issues affecting the cane pricing like failure to harvest the cane crop at the agreed time, corruption in the industry, correct composition of the pricing committee and reduction on taxes/levies.
All outstanding debts to farmers must be settled before the privatization process. It is a common knowledge that several farmers have not been paid by the Millers running into millions of shillings. Due to the corrupt practices in the industry, there are many undecided cases pending before courts and tribunal.
Eng Makabong’ said the privatization of the sugar companies from the public to private firms is no solution to the cane farmer’s predicament. Instead, the government should come up with a clear-cut policy on how to improve the industry.
He gave the privatized Mumias Sugar Company in Western Province as the place where the farmers are now worst hit and the poverty index has gone up threefold.
He said there are plenty of lands for private investors to come and initiate their projects instead of the proposed take over of the existing factories. But all in all the government should rescue the sugar cane farmer’s sand the sugar sub-sector of the economy which is on the verge of total collapse.
Ends
leooderaomolo@yahoo.com