BATU agrees to buy excess tobacco
Apr 04, 2005
BRITISH American Tobacco (BATU) has accepted to buy an additional 1,064 tonnes of tobacco above their target, despite the absence of market for it.
By Emmy Olaki
BRITISH American Tobacco (BATU) has accepted to buy an additional 1,064 tonnes of tobacco above their target, despite the absence of market for it.
Purchase of the tobacco begins on April 6 and will run for four weeks.
“BATU does not have market for the excess tobacco. Therefore, we and the farmers will share the loss equally. Prices paid will be 50% of the 2004 buying price,†Glenn Stocks, BATU’s leaf manager, told the media at BATU offices in Kampala recently.
This is part of the solution to resolve some of the issues raised in a petition to Parliament by tobacco farmers from Bunyoro.
The farmers wanted Parliament to force BATU to buy their unsold tobacco, which they said was about three million kilos and also write off their debts.
BATU has already bought about two million kilos above the 16.6 million kilos target.
Stocks said the 2004 crop debt for the farmers would be reduced by 50%.
BRITISH American Tobacco (BATU) has accepted to buy an additional 1,064 tonnes of tobacco above their target, despite the absence of market for it.
Purchase of the tobacco begins on April 6 and will run for four weeks.
“BATU does not have market for the excess tobacco. Therefore, we and the farmers will share the loss equally. Prices paid will be 50% of the 2004 buying price,†Glenn Stocks, BATU’s leaf manager, told the media at BATU offices in Kampala recently.
This is part of the solution to resolve some of the issues raised in a petition to Parliament by tobacco farmers from Bunyoro.
The farmers wanted Parliament to force BATU to buy their unsold tobacco, which they said was about three million kilos and also write off their debts.
BATU has already bought about two million kilos above the 16.6 million kilos target.
Stocks said the 2004 crop debt for the farmers would be reduced by 50%.