Kinyara Sugar Ltd is set to pay Shs 5.5 billion as a cash top-up to farmers who supplied sugarcane to its factory during the 2025/2026 financial year.
The cash top-up refers to additional payments made to contracted farmers at the end of a financial year, on top of interim prices paid during the course of the year.
Under its standard pricing arrangement, Kinyara Sugar management and the board representing registered farmers meet in the final quarter of each financial year to review prices and set interim rates for the new financial year.
The latest negotiations were led by Kinyara Sugar Ltd Chief Executive Officer Ravi Ramalingam, while farmers were represented by Robert Atugonza, Board Chairman of Masindi Sugarcane Growers Association Ltd (MSGAL).
In a statement, Kinyara Sugar Ltd Public Relations Officer Francis Mugerwa said both parties agreed that all farmers who supplied sugarcane during the 2025/2026 financial year would receive a cash top-up.
“The company will pay cash top ups to all our farmers that supplied Kinyara sugarcane during the 2025/2026 financial year,” Mugerwa said.
He added that payments will be credited directly to the bank accounts of eligible farmers according to their respective entitlements.
Under the agreement, farmers who supplied sugarcane at Shs 128,000 per ton will receive a top-up of Shs 1,500 per metric ton, while those who supplied at Shs 114,000 per ton will receive Shs 8,000 per metric ton supplied.
Kinyara Sugar Ltd operates an outgrower model in which management and farmer representatives jointly set an interim sugarcane price per metric ton at the beginning of each financial year, which runs from July 1 to June 30. The price is reviewed periodically depending on market conditions.
At the end of each financial year, both parties agree on a final price or top-up adjustment.
The Masindi District Vice Chairperson, Bright Mugume, said the payments have had a positive impact on local livelihoods.
“The money has empowered farmers to expand their businesses and improve their livelihoods,” Mugume said.
Masindi Resident District Commissioner (RDC) Darius Nandinda said beyond farmer payments, Kinyara Sugar Ltd contributes to community development through road rehabilitation, water provision, and support to social services such as education and health.
“The taxes Kinyara Sugar Ltd pays to government, the thousands of jobs it offers to the people and the programs targeting communities complement government programs of improving service delivery and improving livelihoods,” Nandinda said.
Atugonza, speaking on behalf of farmers, said the cash top-up was a result of a structured cane production contract and urged farmers to improve production practices.
“I urge farmers to improve on agronomy practices in their fields so that they increase productivity and yield,” he said.
He also encouraged farmers to increase sugarcane supply under the outgrower scheme, noting that end-of-year price reviews provide a cushion against interim market fluctuations.
According to company background, Kinyara Sugar Ltd has about 8,000 registered farmers supplying more than 60 percent of its cane. The factory has a crushing capacity of 10,000 tons per day but currently processes an average of 7,500 tons daily.
The current interim price for sugarcane stands at Shs 112,000 per ton, subject to review at the end of the financial year.
