Sugarcane farmers are happy

Jan 04, 2010

EDITOR—On November 18, The New Vision published an article entitled 2009, “Cane farmers cry foul over raw deal from sugar factories”. The reporter did not have the facts about the price of cane per tonne paid to outgrowers by Kakira Sugar Works (1985) Ltd.

EDITOR—On November 18, The New Vision published an article entitled 2009, “Cane farmers cry foul over raw deal from sugar factories”. The reporter did not have the facts about the price of cane per tonne paid to outgrowers by Kakira Sugar Works (1985) Ltd.

The company currently pays sh40,000 per tonne as interim price, not sh38,000 as reported. The partnership with Kakira Sugar Works and Busoga Sugarcane Growers Association is yielding a lot of tangible benefits to the outgrowers and the community within a 30km radius from the factory. Kakira Outgrowers Rural Development Fund (KORD) was formed as an innovative partnership and as a way of exhibiting their corporate social responsibility. To date, there are 7,000 registered sugarcane farmers and each of them contributes sh250 per tonne supplied to the factory, to KORD. Kakira Sugar Works also contributes sh125 to KORD per tonne of their estate cane supplied to the factory.

Since the inception of CORD in 2005, the fund has grown to over sh2b. Part of this fund has been used to implement community projects like:

- Four science laboratories and 11 classroom blocks fully completed and furnished.

- Twenty-six roads rehabilitated in the catchment area mainly difficult swampy locations

- A fuel station where farmers get fuel on credit and discount,

- Commercial banks and over 1,000 farmers are accessing loans at reduced interest rates,

- Supports 200 orphans, vulnerable children and their households in education and general livelihood improvement.

- Attracting more donor support. The communities will certainly continue to benefit. I would like to inform Ugandans that sugarcane farmers in Busoga are happy and benefiting a lot from the enterprise and the partnership with Kakira Sugar Works.

- David Ojwang Omboko
Chairman Busoga Sugacane Growers Association

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