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{
"id": 125654,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/125654/?format=api",
"text_counter": 185,
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"content": "decrease in surplus stocks provides a fundamental support for the rise in prices of sugar in the world and, more specifically, in our country. That reduction in world sugar production is as a result of the following:- (i) Reduced production in China due to major frost in the previous season. (ii) Reduced investments in new production units in Brazil due to a global cash crunch and improved world ethanol prices which have seen Brazil project to convert 60 per cent of cane to ethanol. The international sugar prices now range between US$462.8 to US$465.0 per tonne (CIF â Mombasa) compared to US$411 in the same period, last year. In Kenya, the total sugar production from January to June, 2009 was 326,000 metric tonnes compared to 314,000 metric tonnes in the same period last year, giving a slight production increase of 3.7 percent. Total sugar sales in January to July, 2009 were 336,000 metric tonnes compared to 307,000 metric tonnes in the same period last year. Closing stocks of sugar were 21,000 tonnes at the beginning of this year, and maintained a decrease trend to finish in August 2009 at only 3,000 tonnes compared to 10,000 tonnes of sugar at the end of the same period last year. The sharp decrease in sugar stocks is attributed to increased sugar sales to meet growing sugar demands against low inputs of table sugar. Generally, for production, the year started high, dropping slightly in February and March, and picking up in mid-March before dropping gradually from April to July. Mumias Sugar Company which supplies, at least, 60 percent of local sugar undertook its factory maintenance between 6th July and 3rd August. That deprived the country of its average production of 23,000 metric tonnes of sugar per month. Chemelil Sugar Company and Kibos, which produce an average of 3,700 metric tonnes and 3,800 metric tones, respectively, were also undertaking maintenance in the month of August. Sugar production is projected at 40,000 metric tonnes in September, 2009. This is lower than the usual high of 54,000 metric tonnes owing to the expected closure of Muhoroni, West Kenya and Nzoia Company for maintenance. It is, therefore, expected that the production in the month of October will be more than usual - 54,000 metric tonnes - given that factories improve their efficiency after maintenance. No importation of non-COMESA sugar into the country duty free has taken place. Any sugar imported from non-COMESA region has attracted duty as the law demands. The Government has, however, requested the East African Community (EAC) to be allowed to import 60,000 metric tonnes of non-COMESA sugar over a period of six months, if the current high price of sugar persists. The COMESA region should be understood. It is a net sugar deficit area with a combined demand of 5.8 million tonnes and supply of 5.3 million metric tonnes. The Government has taken measures to revitalize the sugar industry in the country. In the last five years, the sugar industry has seen reforms that have facilitated the millers and farmers to continue in business, despite the harsh realities of regional and international competition. That includes corporate governance reforms where we have changed managements, performance-based management contracts to ensure efficiency and effective operations. We have undertaken debt restructuring, suspension of interest and penalties on previous loans owed by farmers and millers to the Sugar Development Fund (SDF)"
}