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"content": "(5) Research on high sucrose and early maturing varieties – Kenya Sugar Research Foundation (KeSRF) has researched and launched a number of early maturing high sucrose content, pest and disease tolerate/resistant varieties. In addition, it has established demonstration plots and farmers’ fields for new varieties and to demonstrate best management practices. Recently, a seed cane policy was recently launched which establishes a framework for the functions that are expected to avail good quality seeds sustainably. The framework envisages formation of seed cane committee, multiplication of “A” nurseries to be done at miller level and multiplication of commercial seed at “B” nurseries would be done in the nucleus estates by contracted farmers, among other measures. (6) Changing the cane pricing formula from one based on cane weight to one based on sucrose content. Two sugar mills; namely, Nzoia and Sony Sugar Company are in the process of procuring equipment to start piloting and testing the purchase of cane based on sucrose content. The pilot cane testing unit in Nzoia Sugar Company is currently doing trial runs. The project has been handed over to KeSRF with an initial tranche of Kshs5 million from the Kenya Sugar Board to facilitate the research phase. (7) Infrastructure development – the Kenya Sugar Board made a strategy decision to focus on the construction of bridges and culverts to reduce the distances from the farm to the factory. This would have a direct bearing on the cost of production, cost reduction and improving farmer incomes. The fund has facilitated the construction of 17 bridges, one being a major crossing of River Nzoia in Mumias, 16 bridges in the West Kenya zone and nine bridges in the South Nyanza zone. Once these bridges are completed, cane travel distance for targeted farmers would reduce to at least five to ten kilometres. Madam Temporary Speaker, the third question was about the specific measures taken to ensure that the sugar millers like Mumias and Nzoia Sugar companies in Kakamega and Bungoma counties who owe cane farmers million of shillings are protected from possible collapse. What is being done to ensure that these amounts owed by these millers to the farmers are cleared immediately? The period 2012/2013 saw the industry suffer from inadequate cane supply resulting in the harvesting of immature cane which has very low sucrose. The net effect of this was high cost of production and accumulating cane payment arrears as millers were generally unable to break even. In order to mitigate the payment of arrears, Chemili and Nzoia Sugar companies applied to the Board for a loan from the Sugar Development Fund to pay the farmers arrears. The millers applied for Kshs192,224,695.65 and Kshs378,628,203 respectively. Mumias Sugar Company has not made any application so far. At its 149th meeting held on 28th August, 2013, the Board approved the loan applications which shall be disbursed, subject to receiving the necessary concurrence from the Government. Madam Temporary Speaker, the fourth issue sought is about what the Government is doing to ensure that the formula used to determine the amount payable to farmers for cane delivered is adjusted so as to make it commensurate to the super profits that are made by the sugar millers. To this, the answer is; currently, the sugar industry is using simplified cane payment formulae where the price of cane is directly linked to the The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
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