Kinyara Sugar to pay US$1.51M cash top-up to sugarcane farmers for 2025/26 financial year

UGANDA – Kinyara Sugar Ltd has announced it will pay UGX5.5 billion (US$1.51M) in cash top-up payments to sugarcane farmers who supplied cane to the company during the 2025/2026 financial year, providing additional income to thousands of growers under its outgrower pricing arrangement. 

The cash top-up represents an additional payment made to contracted farmers after the close of the financial year, supplementing the interim sugarcane prices paid throughout the season. The decision followed negotiations between Kinyara Sugar management and representatives of registered sugarcane farmers. 

The latest price review was led by Kinyara Sugar Ltd Chief Executive Officer Ravi Ramalingam, while farmers were represented by Robert Atugonza, Board Chairman of the Masindi Sugarcane Growers Association Ltd (MSGAL). 

In a statement, Kinyara Sugar Ltd Public Relations Officer Francis Mugerwa confirmed that all eligible farmers who supplied sugarcane during the 2025/2026 financial year would receive the additional payment. 

“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 the payments would be deposited directly into the bank accounts of eligible farmers based on their individual entitlements. 

Under the agreed payment structure, farmers who supplied sugarcane at UGX128,000 (US$35.05) per metric ton will receive a top-up of UGX1,500 (US$0.41) per metric ton. Those who supplied cane at UGX114,000 (US$31.21) per metric ton will receive an additional UGX8,000 per metric ton delivered during the financial year. 

Kinyara Sugar operates an outgrower model in which company management and farmer representatives jointly agree on an interim sugarcane price at the beginning of each financial year, which runs from July 1 to June 30.  

The interim price is reviewed periodically in response to market conditions, with a final price adjustment or cash top-up agreed upon at the end of the financial year. 

Masindi District Vice Chairperson Bright Mugume welcomed the payments, saying they continue to strengthen household incomes across farming communities. 

“The money has empowered farmers to expand their businesses and improve their livelihoods,” Mugume said. 

Masindi Resident District Commissioner Darius Nandinda said Kinyara Sugar’s contribution extends beyond farmer payments through investments that benefit surrounding communities. 

“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. 

According to company information, Kinyara Sugar has approximately 8,000 registered outgrowers who supply more than 60% of the factory’s sugarcane requirements.  

The mill has a crushing capacity of 10,000 tons per day and currently processes an average of 7,500 tons daily. The current interim sugarcane price stands at UGX112,000 (US$30.67) per ton, subject to review at the end of the current financial year. 

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