Uganda: Sugarcane Farmers to Trade in Open Market

19.12.2016

The Masindi District security committee has granted sugarcane farmers in the district permission to sell their sugarcane to any willing buyer provided they don't have any contractual obligation with Kinyara Sugar Limited.

The farmers of recent resorted to selling their cane to sugar factories in eastern Uganda, claiming that Kinyara Sugar Factory delays to harvest their cane.

The committee picked interest in the issue because both Kinyara and its farmers were accusing each other of breaching the Cane Production Contract (CPC). The district security committee chaired by the Masindi Resident District Commissioner, Mr Godfrey Nyakahuma, convened a meeting last Thursday to resolve the impasse.

According to Mr Nyakahuma, the measure is aimed at protecting the interests of the farmers and the sugar miller.

"They are now free to sell to the willing buyers. However, any diversion of sugarcane by farmers who have loans with Kinyara will amount to both criminal and civil proceedings against that particular farmer," he said.

The Kinyara Sugar Limited communications manager, Mr Kirunda Magoola, when contacted, declined to comment on the matter.

ISSUES

Remarks. The chairperson Masindi Sugarcane Growers Association Limited, Mr Robert Atugonza, welcomed the resolution by the district security committee saying that it will help sugarcane farmers earn in time.

Advantage. Mr Nyakahuma said the meeting also gave Kinyara Sugar Limited power to arrest farmers who have loans with them and want to divert the contracted sugarcane to other factories. "Each party is supposed to respect the cane production contract," he said.


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