SUGAR SHORTAGE CONTINUE TO BITE AS SOME MILLERS DEFIED GOVERNMENT DIRECTIVE TO SELL DIRECTLY TO THE RETAILERS

12/24/2006
GRANTS WECHE MOKADHO AGAJA KUYO BARUPE WECHE DONGRUOK MBAKA NONRO JEXJALUO NGECHE LUO GI GWENG' THUM TEDO LUO KITGI GI TIMBEGI SIGENDNI LUO THUOND WECHE ;	24/12/2006 SUGAR SHORTAGE CONTINUE TO BITE AS SOME MILLERS DEFIED GOVERNMENT DIRECTIVE TO SELL DIRECTLY TO THE RETAILERS Leo Odera Omolo in Kisumu Some of the sugar millers in Western Kenya have defied a government directive to sell directly to retailers to stem the on going artificial shortage allegedly created by hoarders and unscrupulous racketeers and profiteers waiting to capitalize on the shortage to bring in cheap imports from foreign sources. Out of the six major sugar factories which are functional and operational in Western Kenya only Mumias Sugar and Sony Sugar Companies were by yesterday selling directly to the retailers .Other millers were reportedly reluctant to stop selling to the major distributors for fear of being sued, saying they had binding contracts with dealers. The Manufactures had converged at the Ministry's Headquarters at Kilimo House Nairobi where after a day long deliberations in which the Kenya Sugar Board was also represented endorsed a government order to sell sugar directly to the retailers. It came in the wake of a statement by members of Parliament representing sugar producing region who held an impromptu meeting and issued a stern statement saying that the hoarding was aimed at facilitating well-connected sugar barons and businessmen to import cheap sugar from foreign sources expecting to make huge profits. The Ministry's move has been endorsed by the Kenya Sugar Board (KSB) which also directed the factories to sell directly to retailers. Members of the parliamentary sugar committee (SUPAC) had asked the government to take stern measures against distributors in the country since they were reported to be collecting their normal quotas of sugar from factories on daily basis, but the same commodity has suddenly disappeared from shop shelves. The worst part of the hoarding exercise is that even in small towns, which are close to sugar factories such as Awasi, Awendo , Migori, Rongo, Kisii, Bungoma, Webuye , Kakamega, Yala and even Kisumu the consumers are finding it hard to get sugar from retailers. The biting shortage has seen a bag of sugar retail at more than 4500/- on unscrupulous traders and middlemen at the time when rumors making the round says that more than 10,000 tonnes of duty-free sugar imported by well connected sugar barons from foreign sources were being held at the Kenya's Port city of Mombasa. The government statement issued by the Permanent Secretary in the agricultural Ministry Mr. Romano Kiome said the meeting between the millers and the government has endorsed a resolution which would ensure the price of sugar does not exceed 75/- per kg. The sugar shortage, however, persisted countrywide even as Sony Sugar and Mumias Companies began selling the commodity directly to the consumers. Sugar prices remained high as consumers demand for the sweetener increased threefold owing to the Christmas festivities. Mumias and Sony sugar companies were selling a kilo of sugar between 70/- and 75 respectively, but still the price remained high in most of towns at between 120/- and 140/- per kg. The ministry and other stakeholders, however, appeared to be unaware that the shortage is here to stay for some time. This is because of the fact that all the six major factories don't operate at their full production capacities due to the acute shortage of mature cane in some parts of the cane growing zones. The cane supply is also being hampered by lack of adequate means of transportation from the fields to the factories. Morover, in many places, small scale farmers have abandoned planting of cane a cash crop due to mismanagement and delayed payment for the cane bills, which has hit the poor farmers below the belt. These are some of the issues the Ministry of Agriculture should address. Why a small scale farmer growing cane on five or less acreages should be forced to wait for up to six months after he had delivered his cane, crushed and made sugar sold to consumers. In some places, the farmers have waited for more than a year before they get their dues. ENDS leooderaomolo@yahoo.com The writer is LUOCOME REPORTER based in Kisumu. We urge all LUOCOME members with pressing issues pertaining to media and press releases to kindly contact him from any where in world. He will assist you to get true picture of your Village Developement. LUOCOME-MEDIA ===================================================== Joluo.com Ka in gi mari moro ma di wandik ka to orni Akelo nyar Kager, jaluo@jaluo.com Daher winjo dwondi in bende, iwinjo?	IDWARO TICH? GALAMORO : Riwruok mar JOLUO e Piny Ngima, orwaku uduto mondo ubed e kanyakla mar burani. Ornwa nyingi gi nondi kaka obedo. Riwruok e teko joka Nyanam. WENDO MIWA PARO OD PAKRUOK

24/12/2006

SUGAR SHORTAGE CONTINUE TO BITE AS SOME MILLERS DEFIED GOVERNMENT DIRECTIVE TO SELL DIRECTLY TO THE RETAILERS

Leo Odera Omolo in Kisumu

Some of the sugar millers in Western Kenya have defied a government directive to sell directly to retailers to stem the on going artificial shortage allegedly created by hoarders and unscrupulous racketeers and profiteers waiting to capitalize on the shortage to bring in cheap imports from foreign sources.

Out of the six major sugar factories which are functional and operational in
Western Kenya only Mumias Sugar and Sony Sugar Companies were by yesterday selling directly to the retailers .Other millers were reportedly reluctant to stop selling to the major distributors for fear of being sued, saying they had
binding contracts with dealers.

The Manufactures had converged at the Ministry's Headquarters at Kilimo House Nairobi where after a day long deliberations in which the Kenya Sugar Board was also represented endorsed a government order to sell sugar directly to the retailers.

It came in the wake of a statement by members of Parliament representing sugar producing region who held an impromptu meeting and issued a stern statement saying that the hoarding was aimed at facilitating well-connected sugar barons and businessmen to import cheap sugar from foreign sources expecting to make huge profits.

The Ministry's move has been endorsed by the Kenya Sugar Board (KSB) which also directed the factories to sell directly to retailers.

Members of the parliamentary sugar committee (SUPAC) had asked the government to take stern measures against distributors in the country since they were reported to be collecting their normal quotas of sugar from factories on daily basis, but the same commodity has suddenly disappeared from shop shelves.

The worst part of the hoarding exercise is that even in small towns, which are
close to sugar factories such as Awasi, Awendo , Migori, Rongo, Kisii, Bungoma, Webuye , Kakamega, Yala and even Kisumu the consumers are finding it hard to get sugar from retailers.

The biting shortage has seen a bag of sugar retail at more than 4500/- on
unscrupulous traders and middlemen at the time when rumors making the round says that more than 10,000 tonnes of duty-free sugar imported by well connected sugar barons from foreign sources were being held at the Kenya's Port city of Mombasa.

The government statement issued by the Permanent Secretary in the agricultural Ministry Mr. Romano Kiome said the meeting between the millers and the government has endorsed a resolution which would ensure the price of sugar does not exceed 75/- per kg.

The sugar shortage, however, persisted countrywide even as Sony Sugar and
Mumias Companies began selling the commodity directly to the consumers. Sugar prices remained high as consumers demand for the sweetener increased threefold owing to the Christmas festivities.

Mumias and Sony sugar companies were selling a kilo of sugar between 70/- and 75 respectively, but still the price remained high in most of towns at between 120/- and 140/- per kg.

The ministry and other stakeholders, however, appeared to be unaware that the shortage is here to stay for some time. This is because of the fact that all the
six major factories don't operate at their full production capacities due to the
acute shortage of mature cane in some parts of the cane growing zones. The cane supply is also being hampered by lack of adequate means of transportation from the fields to the factories.

Morover, in many places, small scale farmers have abandoned planting of cane a cash crop due to mismanagement and delayed payment for the cane bills, which has hit the poor farmers below the belt.

These are some of the issues the Ministry of Agriculture should address. Why a
small scale farmer growing cane on five or less acreages should be forced to
wait for up to six months after he had delivered his cane, crushed and made
sugar sold to consumers. In some places, the farmers have waited for more than a year before they get their dues.

ENDS

leooderaomolo@yahoo.com

The writer is LUOCOME REPORTER based in Kisumu. We urge all LUOCOME members with pressing issues pertaining to media and press releases to kindly contact him from any where in world. He will assist you to get true picture of your Village Developement.
LUOCOME-MEDIA