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{
    "id": 419086,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/419086/?format=api",
    "text_counter": 129,
    "type": "speech",
    "speaker_name": "Hon. Kobado",
    "speaker_title": "",
    "speaker": {
        "id": 2964,
        "legal_name": "John Owuor Onyango Kobado",
        "slug": "john-owuor-onyango-kobado"
    },
    "content": "The traders are the same people responsible for poor sugarcane prices, after taking advantage of the Agriculture, Fisheries and Food Authority (AFFA) Act, 2013, which is an Act that has put together several sub-sectors of agriculture without protecting the sugar industry. Collapse of the local sugar industry will result in thousands of workers becoming redundant. The situation is very pathetic. Unless action is taken very fast, we will sooner than later, be seeing very many of our youths back in the streets, having lost their jobs. The price of sugarcane has dropped from Kshs4,300 to Kshs3, 000 per tonne in the last 18 months. It is anticipated that in the next six months, the price will drop even further to Kshs2,500 per tonne. The current sugarcane price per tonne is tagged at an average of Kshs3,000 per tonne. The cost of inputs, comprising of preparation, seed cane and fertilizer, comes to Kshs1,000, plus VAT per tonne. The cost of labour would work to around Kshs800 per tonne. The cost of transportation comes to about 1,800 plus VAT per tonne. The opportunity cost, which is the cost of waiting for 18 months for sugarcane to mature, comes to about Kshs300 per tonne. These items bring the cost of production to about Kshs3,900 per tonne. Considering the total production costs per tonne against the price at which the farmer is paid, at Kshs3,000 per tonne, it leaves us with a loss of about Kshs900 per tonne. The average a farmer would make to break even is about Kshs.3,500. Therefore, I want to plead with this House, that we consider removing VAT from cane transport so that we can zero-rate it."
}