Nimatabac was first licensed to sponsor tobacco growers in 2017. Although the company paid the farmers for that season, It only paid a sum of 1.23 billion out of 5.81 billion Shillings for the supply of 1000 metric tons of tobacco leaf, during the 2018 season. This left them with an outstanding balance of 4.57 billion Shillings.
Godfrey Komakech, the Hoima District Production and Marketing Secretary who is also a member of the verification committee told Uganda Radio Network on Wednesday that they have suspended the verification exercise because of the COVID19 pandemic.
Last year, President Yoweri Museveni promised to Compensate more than 1,300 tobacco farmers after the tobacco buying companies failed to meet their contractual obligation to pay them.
The company contracted more than 700 farmers in Hoima district in January 2019, to grow tobacco and granted them loans which would be recoverable upon the sale of their produce.
Andrew Kasambeko, the Manager Alliance One Tobacco says most farmers grew more tobacco than what they were contracted to do, adding that some farmers went ahead to contract other farmers not known to Alliance One to grow Tobacco on their behalf, which contravenes the contract.
