NATIONAL SUGAR CONFERENCE HELD ON 26^TH – 28^TH OCTOBER 2004 AT THE SCHOOL OF MONETARY STUDIES, NAIROBI

Key issues that emerged during the conference;

1.     The conference appreciated the efforts made by the NARC government in solving some of the problems in the sugar industry like reducing farmers’ arrears.

2.     Develop a major strategic programme

3.     Enhance operational efficiencies

4.     Need good governance in the sub sector

5.     New investments required – sugar factories to diversify

6.     Cane production to be made a profitable undertaking

7.     The tax burden in the sugar industry is high

8.     Announcement of the quota not made in consultation

9.      Need policy framework on new investments

10. Pricing policy

11. Trade liberalization under new under WTO and COMESA poses thread hence need addressing

12. Industry needs a benchmark

13. Financing of sugar research is inadequate

14. Research in seed cane varieties to farmers

15. Poor cane husbandry

16. Poor modes of transport

17. Indebtedness, low crashing capacity, low sugar production

The government would undertake the following;

1.     Develop a policy framework

2.     Enter into necessary protocol

3.     Take steps to position the sugar industry into the expiry of the COMESA safeguard period

4.     Make sugar factories globally competitive

5.     Reduce tax burden for factories

6.     Centralize procurement of inputs

7.     Revise Sugar Act 2001

8.     Establish mechanisms for privatization

9.     Develop policy framework to regulate new investment

10. Establish cane payment system based on sucrose content

11. All disputes to be channeled through the Sugar Arbitration Tribunal

12. Rehabilitate and expand sugar factories

13. Facilitate factories to comply with the set standards

14. Access the sugar industry to the roads fund

The challenge therefore is for the industry stakeholders to get their respective houses in order and embark on reforms and beat the February 2008 COMESA  safeguard period deadline