Kenya’s Sugar Pricing Committee has implemented a two percent reduction in the price of sugarcane, responding to a concurrent decrease in the cost of the commodity on the retail market.

In the most recent review, the committee, mandated with periodically assessing sugarcane prices, revised the cost from Ksh6,050 per tonne to Ksh5,900.

Jude Chesire, the head of the Sugar Directorate, cited a notable decline in retail sugar prices as the driving factor behind this adjustment.

“The significant drop in sugar prices on the shelf prompted the committee to lower the cost of sugarcane per tonne,” said Mr Chesire to Business Day Africa.

To determine the sugarcane cost, the committee considers prevailing sugar prices and ex-factory rates, aiming for equitable returns to both growers and millers.

The committee comprises representatives from various entities, including AFA, the Ministry of Agriculture, farmers, millers, and sugar-producing counties.

Agriculture Cabinet Secretary Mithika Linturi pointed out last month that sugar prices had substantially decreased due to government-initiated measures.

These measures included boosting imports to enhance local supply and improving the efficiency of domestic millers.

Presently, a two-kilogramme sugar packet is available at Ksh399, down from Ksh450 in August of the previous year.

The decline is attributed to increased local sugar production facilitated by the Agriculture and Food Authority (AFA), which permitted sugar factories to fully resume operations last December.

In July last year, the regulatory body imposed a four-month ban on cane milling to allow the crop in the fields to mature before resuming production.

This decision coincided with India, a major global sugar producer, imposing export restrictions to safeguard its local stocks amid a worldwide shortage that escalated sugar prices.