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Masindi, Uganda | THE INDEPENDENT | Sugarcane farmers in Masindi district under their umbrella Masindi Sugar Cane Out growers Association Ltd -MASGAL are protesting the new price for sugarcane that was recently announced by Kinyara Sugar Limited for this financial year.
The Association is the biggest supplier of sugarcane to Kinyara Sugar Works Limited situated in Masindi district.
In a press release dated July 1st 2021, the sugar company announced the new price for cane at Shs88,400 for the 2021/2022 financial year.
The new price indicates a reduction from last financial year’s price of Shs91,586 per ton.
Cosmas Byaruhanga, chairperson for Masindi Sugar Cane Out-growers Association Limited and also the Masindi district chairperson in an interview with Uganda Radio Network on Tuesday morning said the new price was announced without consulting farmers.
Byaruhanga noted that they’re in total disagreement with the new price saying sugarcane farmers are not going to benefit anything.
He added that there is no convincing reason which was given to farmers as to why the price was reduced and as leaders, they are going to ensure that farmers benefit from their sugarcane and therefore a favorable price must be put in place.
John Abigaba, an outgrower says the new cane price announced by Kinyara sugar limited is not effective and they will not accept to supply their cane to the company, adding that they cannot accept a cut in the price of sugarcane when the cost of producing sugarcane has shot up.
Alice Alinaitwe, another outgrower says Kinyara sugar limited management can’t determine the cane price without the consent of the out growers and wants the two sides to come to a mutual understanding saying they will not accept to be exploited.
Ramadasan Vekatraman, the Kinyara sugar general manager could not be reached for a comment by press time since his known telephone number was off.
For years, the sugar company has been feuding with the outgrowers over cane prices. The out growers have always accused the sugar company of exploitation.
In March 2018, Kinyara Sugar Works Company Limited cut the price of a ton of sugarcane from 141,000 to 82,000 Shillings.
This also caused protest among the out growers forcing them to suspend sugarcane supply to Kinyara.
The farmers later lifted the ban after they met with the factory managers and both sides agreed to 112,000 shillings per ton of sugarcane as the tentative price.
In 2020, MASGAL rejected the new cane price offered by the sugar manufacturing giant.
Kinyara Sugar Ltd then indicated that the new cane price for the 2020/2021 financial year would be Shs91,586 per tonne of sugarcane sold by the out growers, down from the previous price of Shs108,200 shillings per tonne a thing that angered the out growers.
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