Millers pay a high price for sugar cane

Due to a lack of sugarcane, manufacturers in Kenya have been forced to boost the price of raw cane by 16% above the price established by the government, despite concerns from the Sugar Directorate on the harvesting of the immature crop.

According to the Sugar Directorate, the total amount of sugar milled last month fell by 40% to 546,000 tonnes from the 908,000 tonnes milled in January of this year.

The sugar directorate’s recommended price of Sh4,584 for a tonne of the commodity has increased to Sh5,250 due to millers’ competition for the constrained supply.

Loaded sugar cane truck Cuba

arca“The sugar industry is experiencing an acute cane shortage across all the zones, which has resulted in factories scaling down their operations and diminished production. There has been an upward sugarcane price pressure with the private millers increasing prices to attract limited cane,” said the directorate.

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The overall amount of sugar bagged during the review period fell by 26% to 49,761 tonnes due to dwindling cane supplies, which has reduced production.

The decline suggests that because there is less supply on the market, consumers can expect to pay more for the sweetener.

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