Kagera small-scale farmers face challenges amidst sugar price fluctuations
KAGERA: IN the heart of Kagera, smallscale farmers have long relied on sugarcane cultivation as a key source of income. Motivated by the promise of financial stability, these farmers formed a Savings and Cooperative Society (SACCOS) to collectively manage their sugarcane production and sales.
The 2022/23 crop season initially seemed promising as Kagera Sugar Limited (KSL), a major buyer in the region, offered a price of 75,000/- per tonne of sugarcane.
This offer galvanised the local farmers, encouraging them to increase production and invest in their cooperative. However, the optimism was shortlived.
As the new crop season began, the price per tonne of sugarcane dropped significantly to 65,000/-.
The reduction in price was a blow to the farmers who had anticipated a steady income to support their livelihoods.
Their hopes were further dashed when KSL, the primary buyer, was not prepared to purchase their sugarcane. In Kagera, small-scale sugarcane farmers like Jasson Rutambukamalogo are facing severe challenges. At 72 years old, Mr Rutambukamalogo, a resident of Bukabuye village, describes a dire situation where many out-growers have piles of unsold sugarcane at their homes.
“This unexpected turn of events left the farmers grappling with a surplus of unsold sugarcane and financial strain,” Mr Rutambukamalogo told Business Standard.
“The drop in price and lack of a reliable market has stalled our efforts to sell the product, leaving many smallscale growers in a precarious position,” he said.
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The challenges faced by these farmers are not just economic but also social. The drop in income and market instability have put pressure on families who depend on sugarcane cultivation for their daily needs.
Despite the initial success and job creation, the adverse effects of price fluctuations and market uncertainty have overshadowed the positive impacts. In response to these challenges, the SACCOS is exploring alternative strategies to stabilise income and secure better market conditions.
They are considering partnerships with other buyers, investing in better storage facilities, and seeking support from local and national government programs aimed at stabilizing agricultural markets.
The story of the small-scale sugarcane farmers in Kagera reflects broader issues faced by many rural communities dependent on single crops. It underscores the need for more robust systems to manage price volatility and ensure that farmers receive fair compensation for their hard work and investment.
The situation is exacerbated by broader industry trends. Large-scale out-growers have rapidly captured the most lucrative business opportunities and secured the land they need, leaving smaller out-growers marginalised.
This shift has intensified the challenges for small-scale farmers who are struggling to compete in a market increasingly dominated by larger players. In response to the ongoing challenges, the Sugar Board of Tanzania (SBT) is taking steps to address the sector’s issues.
To combat sugar shortages and high prices of imported sugar, the SBT is advocating for the expansion of sugarcane acreage and the development of additional sugar factories. By inviting more investors into the sector, the SBT aims to increase domestic production and stabilise the market.
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In response to mounting concerns from small-scale sugarcane farmers in Missenyi district, Nkenge Legislator Mr Florent Kyombo has pledged to take decisive action to address their market struggles.
“Small-scale out-growers in Missenyi are facing significant challenges in accessing reliable markets for their sugarcane. I am actively working to address these issues,” Mr Kyombo said in Dodoma last Thursday.
Mr Kyombo revealed that he plans to hold discussions with Agriculture Minister Mr Hussein Bashe and officials from the SBT to seek solutions for the challenges facing the small-scale out-growers.
This commitment comes after reports from Missenyi district highlighted the urgent need for government intervention as farmers grappled with difficulties in finding stable buyers for their sugarcane.
The situation has been compounded by a recent decline in sugarcane prices and the unwillingness of KSL to purchase from local farmers, leaving many with unsold sugarcane and financial difficulties.
Mr Kyombo’s commitment to resolving these issues reflects a broader effort to support small-scale farmers and ensure they are not left behind in an evolving market landscape.
The forthcoming discussions with government officials and industry leaders are expected to play a key role in finding sustainable solutions and improving conditions for small-scale sugarcane producers in Missenyi district and beyond.
As the situation develops, the collaboration between legislators, government officials, and industry stakeholders will be vital in creating a more stable and equitable market for sugarcane farmers, ultimately supporting their livelihoods and contributing to the overall growth of the agricultural sector.
The government spends about 150 million US dollars annually to cover the sugar deficit caused by low local production. Tanzania currently produces around 342,000 tonnes of sugar per year, while demand is about 630,000 tonnes for both home consumption and industrial use.
The SBT aims to increase production to 750,000 tonnes for local use and export. Agriculture Minister Hussein Bashe recently projected that sugarcane production between 2023 and 2024 will reach 4.5 million tonnes, yielding approximately 465,000 tonnes of sugar.
Despite these efforts, Tanzania still imports sugar from Brazil, Uganda, India, and Thailand to meet its needs.
