Uganda : Sugarcane farmers up in arms over irregular loan deductions by Scoul
Sugarcane farmers from Greater Mukono and the management of Sugar Corporation of Uganda Limited (Scoul) are set to meet Minister of State, Ms. Diana Mutasingwa, to resolve a dispute over loans. Farmers allege that Scoul holds all agreement paperwork and wrongly deducts money from sugarcane payments to cover loans they didn’t take.
Sugarcane farmers from Greater Mukono and management of Sugar Corporation of Uganda Limited (Scoul) are expected to meet the Minister of State in the Office of the Vice President, Ms Diana Mutasingwa, to resolve a long-lasting row between both parties.
The row emanates from loans offered by Scoul to sugarcane growers who couldn’t manage terms and conditions set by commercial banks and other financial institutions. The farmers not only claim that Scoul retains all the paperwork pertaining to the agreements, they further accuse the miller of diverting defaulters’ loans to out growers with whom they have no credit obligations.
Ms Joyce Nabatte, a sugarcane out grower from Mawokota Village, Kawolo II, Buikwe District, said Scoul deducted her money for the sugarcane she supplied them to offset a Shs2 million loan she claims she did not take.“I recently supplied sugarcane to Scoul to enable me pay school fees for my children, but I am now stranded because my money was deducted to clear a loan I did not take,” she said in an interview on Wednesday.
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