Sugar Supply to Decreased on Depressed Cane Milling

The output of local millers is expected to decline, resulting in a shortfall in the sugar supply that imports will likely address.

According to data from the Sugar directorate, there was a shortage of raw material during a severe drought as the total amount of sugarcane milled by all companies in the nation fell to 716,274 tonnes in February from 908,537 tonnes in the previous months.

Despite rising demand for the product, millers only produced 67,451 tonnes of sugar in February, down from 81,488 tonnes in January due to the decline in milled sugarcane.

“Total sugar sales in February 2023 totaled 81,079 tonnes up from 65,921 tonnes sold in January 2023,” the directorate said in a market report.

Consumers did, however, experience some relief in February as the weighted ex-factory price of the good decreased by 11 percent to 5,432 per 50 kg bag from the prior month thanks in part to higher imports of the interest.

“The retail price of sugar for 1kg in February was Sh147 a drop from Sh155 recorded in the previous month,” the directorate said.

Compared to 22,722 tonnes in January, the total amount of imported sugar—white refined and mill white or brown—in February was 28,609 tonnes.

In order to prevent crushing an immature crop, sugarcane farmers in Kisumu last week requested that Agriculture Cabinet Secretary Mithika Linturi shut down every factory in the Nyando Sugar Belt.

“Currently factories are harvesting cane as young as 9 months causing losses for farmers and because of this reason, we propose that all factories close for four months,” Kenya Sugar Growers Association secretary general Richard Ogendo said.

Since the return of rains in most parts of Kenya, there is hope for a short- to medium-term increase in sugarcane production.