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KINYARA TO PAY SHS 11 BILLION ARREARS TO CANE FARMERS

This will apply to all farmers supplying sugarcane to the factory this financial year.

By Our Reporter

MASINDI: Kinyara Sugar Limited has commenced the process of paying arrears of 27000 shillings to over 4000 sugarcane farmers who supplied cane to them starting with July 2022.

The decision comes after the company top management met over the weekend and agreed on a new cane price of 128,000 shillings per ton showing an increment of 27,000 compared to the 101,000 per ton which the farmers were previously getting.

Masilamani Mathlvanan, the Company’s Agricultural Manager said that only farmers who had supplied cane from 1 july up September 2022 will receive the top up of 27,000 on top of the 101,000 they had earlier received per ton.

According to him, this will apply to all farmers supplying sugarcane to the factory this financial year.

He added that they have decided to increase the price because sugar prices have increased country wide.  ”We will continue negotiating with famers’ representatives next financial year for more increments,” he said.

They made the revelation while addressing a joint press conference by Kinyara Management and Masindi Sugarcane Growers Association Limited {MASGAL} top leadership at Masindi hotel on Tuesday.

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Mathlvanan said that they have lost over 1,000 hectares of registered cane to cane poachers who are conniving with their farmers and selling the cane to other companies.

Robert Atugonza the MASGAL chairperson said that they have had several engagements with the company’s top management to make sure that cane price is increased.

He added that this price will only be for one year running from 1 July 2022 to 1 July 2023 and after they will sit down with the company and negotiate a new price because the price of sugar has drastically increased and other companies are giving higher prices.

Atugonza challenged the government through Uganda Revenue Authority to stop harassing farmers with massaging telling them to pay taxes yet the millers are paying taxes to the government.
”This amounts to double taxation yet the cost of producing sugar cane has also increased,” he said.

David Lokuya a farmer commended Kinyara for the increment for the meantime but requested them to continue increasing the price to the tune of shs 180,000 per ton.

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