Uganda : Kinyara Sugar to Pay Shs 17 Bn in Cash Top-Ups to Farmers
Kinyara Sugar Limited will pay Shs 17 billion in cash top-ups to sugarcane farmers for the 2024/25 season. The move, agreed with the Masindi Sugarcane Growers Association, adjusts interim payments to a final price of Shs 131,500/MT. Over 7,500 farmers will benefit. The payout ensures price fairness and strengthens grower confidence.
Masindi, Uganda: Kinyara Sugar Limited (KSL) will pay Shs 17 billion in cash top-ups to its contracted sugarcane farmers for the 2024/2025 financial year.
The payment follows a consensus reached with the Masindi Sugarcane Growers Association Limited (MSGAL) to adjust interim prices in line with the final market value.
In a joint meeting held on June 25, 2025, Kinyara and MSGAL agreed that the final sugarcane price for the 2024/2025 season would be Shs 131,500 per metric ton.
This means farmers who previously supplied cane at lower interim prices will now receive top-up payments to match the final agreed rate.
“This is a unique practice by Kinyara Sugar. We jointly set interim cane prices with the growers’ association, and at the end of the year, we review and compensate based on actual market conditions,” explained KSL Public Relations Officer Francis Mugerwa.
Farmers who sold sugarcane at Shs 108,000, Shs 116,500, and Shs 122,500 per metric ton will now receive additional top-ups of Shs 23,500, Shs 15,000, and Shs 9,000 respectively. Mugerwa noted that this model ensures transparency and fairness by equalizing the final payments for all growers who supplied cane between July 1, 2024 and June 30, 2025.
The company currently works with over 7,500 registered farmers who supply more than 60% of its total sugarcane.
While Kinyara has an installed capacity to crush 10,000 tons per day, it currently processes an average of 6,000 tons daily. The Shs 17 billion payout is expected to be completed within 40 days.
For the upcoming financial year 2025/2026, the interim sugarcane price has been set at Shs 128,000 per metric ton, with a provision to revise it depending on market conditions.
MSGAL Board Chairperson Robert Atugonza welcomed the outcome, describing it as a win for both the farmers and the company.
“We are grateful for the consensus of both parties to sustain the business irrespective of market conditions. This model gives farmers confidence to continue supplying Kinyara, knowing that price variations will be addressed at year-end,” he said.
He urged farmers to remain committed to the supply model and assured them of continued negotiations to protect their interests.
Masindi Resident District Commissioner, Mr. Darius Nandinda, praised both sides for resolving the matter peacefully.
He noted that Kinyara’s contribution to the local economy goes beyond the farmers, citing the company’s significant role in employment, tax revenue, and service delivery in Masindi and across Uganda.
The agreement reflects Kinyara’s long-standing practice of collaborative pricing, aimed at promoting sustainable partnerships with farmers and supporting the broader agricultural economy.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Chimp Reports
