Quality Based Cane Payment System
As the sector seeks to enhance the competitiveness of the sugar industry and meet the conditions set by COMESA, the country has been preparing to transit from the weight-based to Quality-Based Cane Payment system.
Quality Based Cane Payment System (QBCPS) is a payment system in the sugarcane industry where farmers are paid based on the quality of sugarcane they deliver to the sugar mill. This system encourages farmers to produce better quality sugarcane, which ultimately benefits both the farmers and the sugar mill.
In the traditional cane payment system, farmers are paid based on the weight of the sugarcane they deliver to the mill. However, this system does not take into account the quality of sugarcane, which can vary significantly based on factors such as soil type, weather conditions, and farming practices. As a result, farmers may be incentivized to produce large quantities of low-quality sugarcane, which can lead to lower sugar recovery rates and lower profits for the mill.
In contrast, QBCPS incentivizes farmers to produce better quality sugarcane by paying them a higher price per tonne of sugarcane based on the sugar content and purity of their cane. The sugar content and purity are measured using a method called the Pol or Pol% (polarization percentage) test, which measures the amount of sugar in the cane juice. Farmers who deliver sugarcane with higher Pol% receive a higher price per tonne, while those who deliver lower quality cane receive a lower price.
QBCPS has several benefits, including:
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Improved quality of sugarcane:QBCPS incentivizes farmers to produce higher quality sugarcane, which can lead to higher sugar recovery rates and better profits for the mill.
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Fairness:QBCPS ensures that farmers are paid fairly for the quality of sugarcane they deliver, rather than just the quantity.
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Transparency:QBCPS provides a transparent system for measuring the quality of sugarcane, which can help build trust between farmers and the sugar mill.
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Sustainability:QBCPS can encourage farmers to adopt more sustainable farming practices that improve soil health and reduce the use of harmful pesticides and fertilizers.
QBCPS presents a win-win situation for both farmers and the sugar mill, as it encourages the production of higher quality sugarcane and promotes fairness and transparency in the payment system.
11 Cane Testing Units (CTUs) have been installed at (11) Mills namely, Mumias Sugar (2021) Company Ltd., Butali Sugar Mills Ltd., West Kenya Sugar Company Ltd., Kibos Sugar and Allied Industries Ltd., Chemelil Sugar Company Ltd., Muhoroni Sugar Company Ltd. (In Receivership), Sukari Industries Ltd., Transmara Sugar Company Ltd., Kwale International Sugar Company Ltd. Nzoia and South Nyanza Sugar Companies.