Cane Price Negotiation between Kinyara Sugar Ltd and out growers hits Snag|GMEPA NEWS

from L-R is Robert Atugonza, Kosmas Byruhanga, the chairman and the vice of farmers followed by Rosseu Moro, Charles Lema, the district commercial officer; Mathivanan Masilaman & Ravi Malingham

Augustus Bigirwenkya


a fleet of lorries awaits to be off loaded at Kinyara sugar factory
a fleet of lorries awaits to be off loaded at Kinyara sugar factory

Negotiations between the management of Kinyara Sugar Ltd and Masindi sugarcane farmers’ Association over cane price for financial year 2016/17 is ongoing with disagreement over the exact figure as the main challenge for both parties.

Speaking to our reporter at Kinyara Training center on Thursday as closed meeting between two parties was on, Kirunda Magoola, the public relations officer Kinyara Sugar Ltd said that he was sure a point will be reached where a farmer and the miller will benefit.

Kirunda added that, at the beginning of a new financial year both parties would have come out with good tiding.

Cosmas Byaruhanga, the district chairperson Masindi said that, currently Kinyara pays shs78, 500 per ton which is too low compared to other sugar factories in the country. Citing Kakira Sugar Ltd that pays over shs100,000 per ton, Byaruhanga who is also the vice chairperson of Masindi Sugarcane farmers Association wants Kinyara sugar ltd to pay them shs111, 375 per ton.

Byaruhanga disclosed that, Thursday meeting was a third one when the management of Kinyara Sugar Ltd offered to increase the price by shs2, 500 from shs78, 500 to shs80,1000 something that he described as a joke.

In the first two meetings, negotiations could not kick off because the management of Kinyara Sugar Ltd said they were making consultations.

It should be recalled that, a section of out growers went to court seeking declaration for amendment of Cane Production contract (CPC) that was made over 20 years back and Byaruhanga says that if they fail to reach a consensus with the management of Kinyara Sugar Ltd, they will proceed with their case in courts of law that is currently under arbitration.

To avoid delays of payment by Kinyara Sugar ltd to farmers, Byaruhanga disclosed that they resolved to begin negotiations early enough unlike previously when negotiations that could begin in November.