Masindi sugarcane farmers reject the new cane price

By Innocent Atuganyira

Masindi: Sugarcane farmers in Masindi district, under the umbrella of Masindi District Sugarcane Out-Growers Association Limited (MASGAL), have rejected the new cane price imposed by Kinyara Sugar Ltd.

On January 25, 2024, Kinyara Sugar Ltd released a press statement announcing that, upon the management’s close review of the current volatile market situation in the sugar sector of Uganda, it has been resolved to further revise the sugarcane price to ensure sustainability.

The statement also indicated that the price has been revised for stability against external forces and to safeguard the most important interests of all stakeholders.

According to the statement, in this regard, therefore, an interim cane price of 160,000 shillings will be paid per ton of sugarcane harvested from each farmer’s field effective January 25, 2024.

In December last year, Kinyara Sugar Ltd. revised their cane price from 160,000 shillings to 181,000 shillings; however, they have dropped the price back to 160,000 shillings.

While addressing journalists Thursday at Kolping Hotel Masindi, the MASGAL Board rejected the dropped sugarcane price.

Mr. Atugonza Robert, the MASGAL board chairperson, said that as the farmers’ board, they are dissociating themselves from the decision, stressing that the sugarcane price is supposed to be determined by both bodies and the miller.

‘’They should stop fooling us; you cannot wake up in the morning and determine the price of sugarcane. This time, the decision that will be made by the farmers is what we shall implement. As board on behalf of the farmers yesterday, we communicated and said that we are not agreeing on the price they want to announce on their own because we know we collectively agree on the price between Kinyara Sugar Ltd and MASGAL,’’ he added.

‘’We strongly disagree with their system of bullying; you cannot bully farmers, however poor we are; we can’t be bullied; our investment is equally big and important to this country and the miller. They cannot give us 160,000 shillings when other factories are paying above 200,000 shillings per ton. We actually thought that if we waited until the end of the year, farmers would get an additional pay.’’

Contrary to the dropped sugarcane price, Atugonza said that the cane harvested from the farmer’s field starting on January 25, 2024, will be paid at the price of 181,000 shillings. ‘’The cane harvested from the farmer’s field will be paid at the running price of 180,000 shillings per ton; out of that, we shall face it with them,’’ he vowed.

‘’They should not imagine that we grow sugarcane without investing in it; we have a minimum cost of production; we own our sugarcane; and they own their factory. We should decide how much they should buy our cane. We can even choose to do other businesses and abandon sugarcane growing.’’

According to Atugonza, during the sugarcane farmers’ meeting held recently at Masindi demonstration farm Kihonda, farmers agreed there would be an increment on the cane price to 200,000 shillings, stressing that the reduction of the cane price is the dilemma they need to sort out.

Patrick Byamukama, the MASGAL secretary, asserted that when they agreed on the price of 181,000 shillings, all other factories were above 230,000 shillings. The price was agreed on, hoping there would be an increment by the end of this year.

‘’When we agreed on the price of 181,000 shillings, all other factories were above 230,000 shillings, but we agreed to a lower price as a safeguard that this price should run for the whole year. We anticipated that there would be setbacks, and that’s why, at a time when others were getting 230,000 shillings,’’ he said, stressing that though things are now getting bad, no single factory is buying cane at a lower price of 200,000 shillings and wondered why Kinyara is dropping the cane price to 160,000 shillings per ton.

Byamukama vowed that they will not accept any price below 181,000 shillings, saying that they are expecting the company to raise the cane price above 200,000 shillings.

Following the drop in cane price, the farmer’s board has resolved to call for an emergency meeting with the farmers this Saturday, which will be held at Kabango Church of Uganda, to agree on the cane price.

We couldn’t get a comment from Mr. Aldon Walukamba, the Kinyara Sugar Company Corporate Communications Manager since he didn’t respond to our repeated phone calls.

Currently, over 7,600 sugarcane farmers are registered with Masindi District Sugarcane Out-Growers Association Limited (MASGAL).

Do you have a story about your community or an opinion to share with us? Email us at theugreports@gmail.com.