Kinyara Sugar Company Limited in Masindi district is stuck with more than 180,000 tons of sugar because of distortions in the sugar prices in the country.
Kirunda Magoola, the Corporate Communications Manager Kinyara Sugar Limited, says the sugar stock has been piling since November last year.
He however, didn’t explain the source of the sugar being dumped on the matter. This publication was unable to independently verify the claims.
Last month, Masindi District Sugar Cane Growers Association Limited (MASGAL) resolved not to supply sugar cane to Kinyara sugar limited accusing it of reducing cane prices from Shillings 141,000 to Shillings 100, 000.
Magoola explains that the price Kinyara is giving to farmers is not the final one but advance payment pending the completion of their negotiations with the sugar cane farmers
Sugar cane farmers in Masindi district have for long been pushing Kinyara Sugar Company to increase the cane price.
Last year, Kinyara Sugar Company increased the price of sugar cane from Shillings 78,000 to Shillings 141,000 a ton.
However, the price has been lowered to Shillings 100,000 due to the fluctuation of the price of sugar.