Mayuge Sugar Factory has increased the buying price of sugarcane from out growers. Last week, the out growers threatened to stop supplying sugarcane cane to Mayuge sugar factory citing low prices. This morning, Kamulesh Bhai, Managing Director Mayuge Sugar Factory said they have increased the buying price of cane from the out growers.
He says a tone of sugarcane now costs shillings 83,000 from shillings 74,000. Kamulesh says that they accepted to increase the cane prices to enable the out growers deal with the high inflation. He says that the farmers will be paid immediately after delivering their cane a receipt issued to the suppliers.
Kamulesh boasts that the new price is the highest ever paid to out growers across the country. Wilson Dhabalamu, Chairman Mayuge sugarcane out growers has welcomed the increase in the cane buying price. He however wants the factory to pay at least shillings 200,000 per tone of cane supplied to the factory.
