MASINDI

The Masindi based Kinyara sugar factory has revealed that they are grappling with cane poachers which has since then caused a tax revenue contribution drop to both central government and local government.

Ravi Ramalingam, the Kinyara sugar general manager says that sugarcane poaching means a particular cane factory taking away cane from their out growers.

Kinyara Sugar Factory located in Masindi. (Photo by Ambrose Niwagaba Katoto)

Without mentioning sugar companies involved in cane poaching, Mr. Ravi added that the continued unchecked cane poaching in the region has forced them to mill sugarcane at its immature age which is so costly and not desirable.

“Yes during Covid 19 there was a delay in harvesting cane from our farmers but currently harvesting has been normalized to 14 months but our farmers are not appreciating what the factory is doing for them and they go on to sell cane to poachers at a low price” Ravi said.

While speaking during a media engagement held on Thursday afternoon at the factory's training center, Mr. Aldon Walukamba, the chief corporate affairs manager at Kinyara Sugar revealed that the company is losing Shs 22 billion annually to cane poachers.

Walukamba noted that Kinyara Sugar used to contribute tax revenues of about Shs 118.9 million in the past years but in the financial year of 2020/2021, the company only contributed tax revenue of Shs 53.8 million.

Sam Rugambwa, the deputy agriculture manager, notes that Sugarcane poaching started in 2017 adding that it has greatly affected their chain of production.

Rugambwa adds that poachers have also failed the factory's plan to increase the generation of electricity to 40 megawatts.

He notes that currently they are generating only 14.5 megawatts because sugarcane fiber also known as Bagasse that is crushed to generate electricity is very low.

Rugambwa explains that the bagasse is burnt in large furnaces to boil water that generates steam to drive electricity turbines.

“We need to mill 10,000 tons of sugarcane daily for us to produce enough bagasse but currently we mill only 5000 tons of sugarcane” Rugambwa said.

Rugamba down plays the complaints of late payments made by the farmers, saying that they don't go beyond ten days after cutting their cane as provided for in the production contracts. 

In October 2008, Kinyara Sugar Works signed an agreement with Uganda Electricity Distribution Company to supply four megawatts to the national grid but currently they are supplying only 1.5 megawatts while the remaining 12.5 megawatts is being used for their operations.

During his state of the nation address on May 31, 2016, President Yoweri Museveni called for a stop to sugarcane poaching to avoid the risk of importing sugar from other countries due to low production.