SCOUL to pay higher price for sugarcane
Jan 06, 2007
IN an attempt to win back outgrowers, the Sugar Corporation of Uganda (SCOUL) has increased the price of sugarcane.
By Vision Reporter
IN an attempt to win back outgrowers, the Sugar Corporation of Uganda (SCOUL) has increased the price of sugarcane.
The Lugazi-based company is now offering sh38,500 per tonne from sh34,000 three months ago.
The increase also aims at staving off competition from sugar mills that used to offer higher prices to the outgrowers even before harvesting.
S.C. Khanna, the chief executive, however, said the new price would depend on distance from the factory.
“This scheme has already started bearing fruits. There is improved supply of sugarcane,†he revealed.
SCOUL gets 500,000 tonnes of sugarcane (80%) from its plantations. It anticipated getting about 100,000 tonnes (20%) from outgrowers, but that didn’t happen.
The company had also anticipated increasing daily production from 140 tonnes in 2006 to 200 tonnes, but failed.
As a result, it produced 40,000 tonnes, failing to beat the 48,000 target. This was also less than the 42,000 tonnes produced in 2005.
The company also lacked enough bagasse (sugarcane residue) to run its $10m (sh17.5b) power generation plant.
IN an attempt to win back outgrowers, the Sugar Corporation of Uganda (SCOUL) has increased the price of sugarcane.
The Lugazi-based company is now offering sh38,500 per tonne from sh34,000 three months ago.
The increase also aims at staving off competition from sugar mills that used to offer higher prices to the outgrowers even before harvesting.
S.C. Khanna, the chief executive, however, said the new price would depend on distance from the factory.
“This scheme has already started bearing fruits. There is improved supply of sugarcane,†he revealed.
SCOUL gets 500,000 tonnes of sugarcane (80%) from its plantations. It anticipated getting about 100,000 tonnes (20%) from outgrowers, but that didn’t happen.
The company had also anticipated increasing daily production from 140 tonnes in 2006 to 200 tonnes, but failed.
As a result, it produced 40,000 tonnes, failing to beat the 48,000 target. This was also less than the 42,000 tonnes produced in 2005.
The company also lacked enough bagasse (sugarcane residue) to run its $10m (sh17.5b) power generation plant.