Kinyara Sugar to pay Shs 5.5bln in cash top-ups to farmers
A cash top-up is an additional payment made to contracted farmers at the end of a financial year, over and above the interim price paid for sugarcane deliveries during the year
MASINDI, July 6, 2026 — Kinyara Sugar Ltd will pay Shs 5.5 billion in cash top-ups to contracted farmers during the 2026/27 financial year for sugarcane supplied to the company during the last financial year.
A cash top-up is an additional payment made to contracted farmers at the end of a financial year, over and above the interim price paid for sugarcane deliveries during the year.
As part of its pricing model, Kinyara Sugar’s management meets the Board of Directors of the Masindi Sugarcane Growers Association Ltd [MSGAL] in the final quarter of each financial year to review the prevailing sugarcane price, determine any end-of-year top-up and set the interim price for the new financial year.
The latest price negotiations were held recently between Kinyara Sugar’s management, led by Chief Executive Officer Ravi Ramalingam, and the MSGAL leadership, headed by Chairman Robert Atugonza, together with other farmer representatives.
“As per the mutual resolution between the management of Kinyara Sugar Ltd and the Board of Directors of Masindi Sugarcane Growers Association at a price negotiation and harmonisation meeting held on Thursday, we are pleased to inform all our stakeholders that the company will pay cash top-ups to all farmers who supplied sugarcane during the 2025/26 financial year,” Kinyara Sugar Public Relations Officer Francis Mugerwa said in a statement.
He said the money will be credited directly to the bank accounts of all eligible farmers according to their respective entitlements.
Kinyara Sugar operates a unique pricing model under which management and the farmers’ association jointly agree on an interim price per metric tonne of sugarcane supplied during each financial year, which runs from 1 July to 30 June.
The interim price may be reviewed during the year, depending on prevailing market conditions, before a final price and any cash top-up are agreed at the end of the financial year.
Following this year’s negotiations, it was unanimously agreed that farmers who supplied sugarcane at an interim price of Shs128,000 per metric tonne will receive a cash top-up of Shs1,500 per tonne. Those who supplied cane at Shs114,000 per metric tonne will receive a top-up of Shs8,000 per tonne.
Positive impact on communities
The annual cash top-up payments have had a significant economic impact on farming communities in Masindi District and other parts of the country.
“The money has empowered farmers to expand their businesses and improve their livelihoods,” said Masindi District Vice Chairperson Bright Mugume.
“The billions of shillings that Kinyara Sugar Ltd pays to farmers, contractors and the business community have greatly improved household incomes and stimulated economic activity across the district,” he added.
Masindi Resident District Commissioner Darius Nandinda said the company’s contribution extends beyond payments to farmers.
“Besides the direct payments to farmers, contractors and service providers, Kinyara Sugar Ltd rehabilitates and maintains thousands of kilometres of roads, provides safe and clean water to communities, and supports education, healthcare and other community services,” he said.
He added that the company’s tax contributions, employment opportunities and community development programmes complement government efforts to improve service delivery and livelihoods.
Farmers welcome the incentive
MSGAL Chairman Robert Atugonza said the cash top-ups are provided under the Cane Production Contract (CPC) between the company and contracted sugarcane growers.
He noted that farmers widely regard the payments as an important incentive in addition to the interim price received upon delivery of their cane.
“Overall, farmers appreciate this cash top-up. I urge them to improve agronomic practices so they can increase productivity and yields,” Atugonza said.
He added that higher cane productivity translates into increased incomes for farmers.
“I also encourage farmers to grow and supply more sugarcane to Kinyara Sugar as a way of benefiting from this unique outgrower scheme,” he said.
According to Atugonza, the pricing model gives farmers confidence to continue supplying sugarcane regardless of fluctuations in the interim price, since final price negotiations at the end of the financial year take into account changes in market conditions.
Background
Kinyara Sugar Ltd has approximately 8,000 registered outgrowers, who supply more than 60 per cent of the sugarcane processed by the factory.
The company has an installed crushing capacity of 10,000 tonnes of sugarcane per day, although it currently processes an average of about 7,500 tonnes daily.
For the 2026/27 financial year, Kinyara Sugar has set the interim sugarcane price at Shs 112,000 per metric tonne. As in previous years, the price will be reviewed at the end of the financial year in line with prevailing market conditions.
https://thecooperator.news/masindi-flood-victims-receive-relief-items-from-kinyara-sugar-limited/
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