NSE Listed Sugar miller Mumias has temporarily stopped operations due to lack of enough cane from its suppliers.
The chairman Dan Ameyo on Tuesday said that most farmers it had signed to supply cane had defaulted on and were delivering to rival millers because they pay cash-on-delivery unlike Mumias.
“Our cane has been poached because people have ready cash just to buy cane which other people have developed. We would like a reversal of this trend so that the sustainability of this and other companies is assured .We now have other millers who have come around flashing cash and going and picking cane without investing in its development,” he said.
Mr Ameyo said Mumias will take legal actions against the rivals and that the factory will remain closed until the situation is addressed.
Share Price
On Tuesday, Mumias Sugar share price closed at Ksh 1.40, this is 8% above its all time low of Ksh 1.30, set on June 24, 2016.
