Kinyara Cane Outgrowers Demand Share On By Products

4759 Views Masindi, Uganda

In short
Led by Hajji Mohmoud Kazimbiraine, the out growers wrote to Kinyara on December 2, 2015 claiming, that the cane production contract does not in any way show how farmers benefit from by-products of the cane, which include bagasse and molasses.

Kinyara Sugar Cane out growers are demanding for the revision of the cane production contract (CPC) to include a clause giving farmers a share of the proceeds from Bagasse and Molasses. Bagasse is the fibrous matter that remains after sugarcane stalks are crushed to extract its juice while molasses is a sticky by-product of the refining of sugarcane.
 
 
Currently, Kinyara uses Bagasse to generate about 13megawatts of power 5 of which, is sold to the national grid. Now, the farmers want to benefit from the income generated from the supply of power to the national grid and sale of molasses to businessmen.
 

Clause seven of the current cane production contract states that "the contract price payable by the miller to the farmer for the sugarcane shall be determined by the application of the cane price formula."

Through Tumwesigye, Baigana & company advocates, the farmers argue that the above clause is not only vague but inconsiderate to the plight of the cane producer in comparison with the miller.
 
 
Led by Hajji Mohmoud Kazimbiraine, the out growers wrote to Kinyara on December 2, 2015 claiming, that the cane production contract does not in any way show how farmers benefit from by-products of the cane, which include bagasse and molasses.

"The above by-products are of great value to the miller and the cane producer, as such, the payment formula should include all by-products of sugarcane," the letter reads in parts.

The farmers want Kinyara to review the contract by re-adjusting the percentage of sugar price formula to harmonise the price in the industry and the prevailing economic realities.



Ravi Ramalingham, the General Manager Kinyara Sugar Limited, says the company is handling the farmers' issue through Masindi Sugar Cane Growers Association.
 
 
"We signed a cane production contract with individual farmers but since they have an association, we are working directly with the association to solve their complaint," he said.

However, Cosmas Byaruhanga, the vice chairperson Masindi Sugarcane Growers Association says the management of Kinyara has not shown any interest and commitment to revise the cane production contract.
 
 
Byaruhanga says every time the out growers meet the factory managers they claim that it is only the directors who have authority to revise the contract.

According to Byaruhanga, many things are being done outside the cane production contract which was drafted 20 years ago. Out growers supply about 60 percent sugarcane to Kinyara sugar factory.