By Yosam Gucwaaki
Sugarcane farmers in Masindi District have resolved to suspend supplying sugarcane to Kinyara Sugar Company until the sugar price in the country stabilizes.
The farmers reached the resolution during a consultation meeting on the on the Sugar Company’s proposal to cut the price of purchasing sugarcane following the reduced market for sugar.
The meeting was convened by the farmers’ association in Kabango town yesterday.
The resolution followed a revelation by the company’s general manager Ramadasan Ravi that Kinyara Sugar Company in Masindi district is stuck with 17,250 tons of sugar due to low demand in the country.
Ravi who blamed the low market for sugar in the country on the failure by government to control the importation of cheap sugar into the country revealed that this has made it hard for the company to sell its sugar.
As a result, the company has been forced to reduce the price of a 50 kilogramme bag of sugar to 125,000 down from 198,000 shillings.
Ravi said the nationwide problem has greatly reduced the company’s profits of sugar.
Ravi told the farmers that due to the reduced market for sugar, Kinyara Sugar Company wants to cut the price of a tone of sugarcane from the 141,000 shillings to 82,000 shillings as the interim price the company will be paying the farmers as a way of what he called managing the market situation. He said during that period, the company will be monitoring the situation.
However, the farmers vehemently opposed Ravi’s proposal, saying they cannot accept a cut in the price of sugarcane when the cost of sugarcane production has shot up.
They advised Kinyara Sugar Company to bear with the situation until June when they will discuss the new price.
The farmers later resolved to suspend supplying sugarcane to Kinyara Sugar Factory and also advised the company to close shop until the sugar price stabilizes.
However, the sugarcane farmers’ chairperson Cosmas Byaruhanga, advised the farmers to continue supplying cane to Kinyara until a bigger meeting will be convened to communicate the farmers’ decision to central government.
Source: www.mknewslink.com; a western Uganda news website.