The farmers argued that their payments for cane supplied to the factory were subjected to a tax of 1280 Shillings for each ton, further eating into their meagre profits. The trucks are equally subjected to 5 percent taxes at the weighbridge.
David Ojwang, the Vice Chairman Kakira Out growers Rural Development Fund, says plans are underway to review their contracts with the out growers. He says this will help them to identify farmers promoting poaching, which has affected production at Kakira sugar limited.
The arrests followed petition by sugarcane out growers in Jinja district over rampant fires and a demand for subsidies to cover for the losses incurred last month. David Ojwang, the Kakira Sugarcane Out growers Chairman says 19 fire outbreaks were recorded in the Sub Counties of Butagaya, Buyengo, Busedde and Budondo since the beginning of this year.
While appearing before the Tourism, Trade and Industry committee of parliament, officials of Kakira Sugar Works led by Jim Kabeho Mwine, the Director Madhvani Group and Chairman Uganda Sugar Manufacturerâ€™s Association, the group noted that, zoning is of a great importance in the sugar industry and should be respected.
\"These robbers are not ashamed to rap the government for failure to prevail over the skyrocketing prices yet they are the beneficiaries of the current economic situationâ€ the president was quoted saying.