3,000 farmers sue BAT-U
Mar 25, 2005
OVER 3,000 tobacco farmers in Hoima and Masindi have sued British American Tobacco (BAT-U) for failing to buy the extra three million kilos of tobacco produced during the last season.
By David Muwanga
OVER 3,000 tobacco farmers in Hoima and Masindi have sued British American Tobacco (BATU) for failing to buy the extra three million kilos of tobacco produced during the last season.
In a civil suit filed at the Commercial Court, the farmers want BATU to compensate them for the unbought tobacco.
Represented by Muwema and Mugerwa Advocates and Solicitors, the farmers asked court to investigate and establish the price of the rotten tobacco.
“The farmers have asked BATU to get a toxic waste specialist to dispose of the rotting tobacco, which is becoming an environmental hazard to neighbouring towns,†an industry source said on Thursday.
“The farmers said BATU’s grading system is unfair. They also want court to review the pricing system so that they get higher prices,†the source said.
The tobacco growers want debts accrued from farm equipment, which they got at higher prices, to be written off because they can’t pay back.
“BATU sold them the equipment, seeds, chemicals and other inputs. However, in December, the company bought some tobacco and left them with three million kilos, yet under the contract they were supposed to sell only to BATU,†the source said.
The source said it is an offense to sell tobacco to another buyer under the Tobacco Marketing Control Act.
“BATU claimed it had hit its target and wouldn’t be able to buy more, but the contract does not limit the amount of tobacco farmers should produce. BATU claims it has no market, yet it’s the company’s responsibility to market the produce,†the source said.
OVER 3,000 tobacco farmers in Hoima and Masindi have sued British American Tobacco (BATU) for failing to buy the extra three million kilos of tobacco produced during the last season.
In a civil suit filed at the Commercial Court, the farmers want BATU to compensate them for the unbought tobacco.
Represented by Muwema and Mugerwa Advocates and Solicitors, the farmers asked court to investigate and establish the price of the rotten tobacco.
“The farmers have asked BATU to get a toxic waste specialist to dispose of the rotting tobacco, which is becoming an environmental hazard to neighbouring towns,†an industry source said on Thursday.
“The farmers said BATU’s grading system is unfair. They also want court to review the pricing system so that they get higher prices,†the source said.
The tobacco growers want debts accrued from farm equipment, which they got at higher prices, to be written off because they can’t pay back.
“BATU sold them the equipment, seeds, chemicals and other inputs. However, in December, the company bought some tobacco and left them with three million kilos, yet under the contract they were supposed to sell only to BATU,†the source said.
The source said it is an offense to sell tobacco to another buyer under the Tobacco Marketing Control Act.
“BATU claimed it had hit its target and wouldn’t be able to buy more, but the contract does not limit the amount of tobacco farmers should produce. BATU claims it has no market, yet it’s the company’s responsibility to market the produce,†the source said.