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{
    "id": 1472713,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1472713/?format=api",
    "text_counter": 74,
    "type": "speech",
    "speaker_name": "Hon. (Dr) John K. Mutunga",
    "speaker_title": "",
    "speaker": null,
    "content": "Ministry of Agriculture and Livestock Development is doing the following to achieve self- sufficiency in sugar. First, is improving sugar-cane production. For the first time in years, the average monthly sugar production has hit 84,000 metric tonnes against a demand of 80,000 metric tonnes, which is attributed to improved yields as a result of provision of subsidised fertilisers to farmers. Secondly, it is improving the operational efficiency of factories. The Government has put in place measures to inject private capital and operational expertise in Government-owned factories through proposed leasing of the five factories to private sector investors. Third, is the introduction of Excise Duty on imported sugar. All imported brown table sugar is charged Excise Duty at the rate of Ksh5 per kilogramme to cushion local sugar production from exploitative cheap imported sugars. The fourth issue that the Member needed clarification on is the details on the consultations, if any, that were undertaken with sugar-cane farmers and other stakeholders before the interim cane price was set, and whether the concerns of farmers regarding the production costs were considered. The response is as follows: The Sugar Pricing Committee meetings are usually held on a quarterly basis and the farmers are often represented in those meetings. The Second Interim Sugar Pricing Committee was appointed in November 2023 for a period of six months. The Committee held its last meeting in May 2024. Since the Sugar Pricing Committee was not in place, the AFA Sugar Directorate issued an advisory setting the price per tonne of sugar at Ksh4,950 in August. So, the simplified cane pricing formula placed the theoretical price of sugar at Ksh4,828 per tonne, but this was adjusted to Ksh4,950 per tonne after consultations with the stakeholders. Fifth, Hon. Elsie Muhanda needed detailed information on the composition and status of the reconstitution of the Sugar Pricing Committee, including whether there is representation from sugar-cane farmers in the current structure. The response is that AFA requests the nomination of representatives from the umbrella out-grower institutions, miller associations and the Council of Governors. The current members were nominated by their respective organisations, and the current membership of the Committee is drawn from the Ministry of Agriculture and Livestock Development, AFA, Kenyan National Federation of Sugar-cane Farmers, the Kenya Sugar-cane Millers Association and the Council of Governors. Those are the five members. Hon. Titus Khamala sought a statement requesting the Ministry to present a report on the factors and indicators that AFA used to determine the new sugar-cane prices. The response is exactly the same as the response given to Hon. Elsie Muhanda, which is the formula that is used in pricing the cane. The other issue that Hon. Khamala needed clarification on is the mechanisms in place to ensure price regulations are made with adequate input from relevant stakeholders, particularly farmers and millers. The response is that sugar prices are reviewed and determined by the Sugar-cane Pricing Committee, which comprises of members from different institutions as follows: The chairperson is appointed by the Cabinet Secretary (CS) from amongst the members of the Sugar-cane Pricing Committee. One person is nominated by the Ministry responsible for matters relating to agriculture and appointed by the CS. Two persons are nominated by AFA and appointed by the CS. Two persons are nominated by the registered umbrella out-grower institutions and appointed by the CS. Two persons are also nominated by the registered umbrella miller associations and appointed by the CS. Finally, three persons are nominated by the Council of Governors from the county governments in sugar-cane growing areas and appointed by the CS. Meetings of the Sugar-cane Pricing Committee are held quarterly during The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}