By Abubaker Mukose
KAKIRA Sugar Works has lost $1.2m (sh2.2b) in illegal purchase of out-growers cane by jaggery millers.
Madhvani Group’s company secretary, SK Iyengar, said between July and November, the factory had operated at 60% capacity due to the cane shortage.
“We lost about 200,000 tonnes of cane after it was diverted to the jaggery millers. We were compelled to cut our own cane at 18 instead of 20 months,” Iyengar said.
The agriculture manager, KTK Raju, said the out-growers were attracted by the ready cash.
“The trend is becoming rampant and compelling us to halt production for hours each day to accumulate the cane. It wouldn’t have been a big problem if we were prepared, but we banked on the out-growers’ cane for the extension plan,” Raju said.
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