Teso farmers lose out as Shs18bn cereal plant lies idle in Soroti City
SOROTI CITY, September 25, 2026 — Farmers in the Teso sub-region are missing out on opportunities to add value to their produce and access better markets as a Shs18 billion cereal value-addition facility in Soroti City remains largely idle.
The facility was established to provide a ready market for farmers, add value to cereals and generate revenue for the city. However, it has remained largely non-operational for more than a year.
For farmers who depend on crops such as millet, maize and sorghum, the facility was expected to provide a ready market and enable them to earn more from their produce instead of selling it in raw form.
Modesta Alote, a farmer from Serere District who grows millet, maize and sorghum, said she was not aware of the facility but hoped its operation would benefit farmers.
She said the facility could help her and other farmers add value to their produce instead of selling it in raw form.
Paul Angura, a farmer from Kaberamaido district, said he expected the facility to provide farmers with a ready market and help them secure better prices for their produce once it becomes operational.
He said a facility dedicated to buying and adding value to cereals could encourage farmers to increase production while reducing the difficulties they face in finding buyers after harvest.
However, Soroti City authorities say the facility’s main processing section has not been operationalised.
Soroti City Town Clerk Paul Batanda said the city is seeking to terminate the contract of TOTICO Uganda Limited, the company contracted to manage the facility.
Batanda said the company was required to pay the city a monthly management fee of Shs 25 million under an agreement signed on March 15, 2024.
According to Batanda, unpaid management fees have accumulated to Shs650 million.
He said TOTICO Uganda Limited was contracted by the Ministry of Local Government to manage the facility’s operations, including buying, sorting, grading, packaging and selling cereals.
Batanda said the facility’s lock-ups and shops are partially functional, while the larger section housing machinery for sorting, grading and packaging maize, millet, sorghum and groundnuts remains idle.
The facility also has silos intended for buying and storing cereals from farmers in the Teso sub-region, as well as a machine for processing groundnuts into paste, locally known as odii.
Batanda said the city had written to the Ministry of Local Government over the situation and was advised by the ministry’s Procurement and Disposal Unit [PDU] to formally communicate its position on terminating the contract.
He said the city would write to the ministry to initiate the termination process and pave the way for another contractor to take over management of the facility.
“So that is what we are going to do and the letter will go on Wednesday. Then the ministry will terminate the contract and get another contractor so that we solve the issue,” Batanda said.
Batanda warned that continued delays could expose the facility and its machinery to vandalism and depreciation.
The proposed change of operator could determine whether the Shs18 billion investment is finally put to use, with farmers and the city expected to benefit if the facility becomes fully operational.
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