Farmers from Ngere Tea Factory in Gatanga Sub-County have raised concerns over certain provisions in the Tea Factory Act 2021, urging the government to review the policy to address persistent challenges in the sector.
Key Concerns Raised
Reserve Price Policy
The reserve price mechanism, introduced to stabilize tea prices, has faced criticism for failing to effectively improve farmers’ earnings:
- James Githinji, KTDA Zone 2 board member, acknowledged the reserve price policy’s protective intent but noted its shortcomings in addressing market volatility.
- While some farmers have called for its removal, Githinji cautioned that scrapping the policy may expose farmers to losses in volatile global markets.
- He emphasized the need for a policy review rather than outright removal to ensure it achieves its objectives.
Backlog of Unsold Tea
- A backlog of unsold tea at the Mombasa auction has been attributed to compromised quality from some farmers and estates.
- Githinji urged stakeholders to maintain high-quality production standards to clear the surplus and stabilize prices.
Operational Cost Deductions
Farmers voiced concerns over a proposal to increase operational deductions by factories:
- The deduction increase from KSh 1.50 to KSh 2.00 per kilo of green leaf was highlighted by local farmer Felix Mwangi, who argued that it would further diminish farmers’ earnings.
Additional Issues
- Unpaid Government Debt
- The government owes Ngere Tea Factory farmers KSh 92 million, significantly straining the factory’s operations.
- Farmers urged the government to expedite repayment to restore the facility’s efficiency.
- Cost of Fertilizer
- Farmers decried the high cost of fertilizer, noting they are charged KSh 3,400 per 50-kilo bag, despite a government-promised price of KSh 2,500.
- They emphasized the need for subsidized fertilizers to offset rising production costs.
Farmers’ Recommendations
- Policy Review: Amend the Tea Factory Act 2021 to address gaps in the reserve price policy while ensuring market stability.
- Debt Repayment: Urge the government to clear outstanding payments to support factory operations.
- Subsidized Inputs: Ensure timely access to affordable fertilizers to boost productivity and safeguard farmers’ livelihoods.
Conclusion
The farmers called on the government and relevant stakeholders to address these pressing issues, arguing that an effective policy framework and operational support are essential to improving their earnings and ensuring the sustainability of Kenya’s tea sector.