Kinyara Sugar to Distribute Shs 5.5 Billion in Farmer Bonuses

Kinyara Sugar Limited is set to disburse a substantial Shs 5.5 billion in cash top-ups to sugarcane farmers who supplied cane during the 2025/2026 financial year. This supplementary payment, agreed upon after joint price reviews between the company’s management and farmer representatives, aims to provide farmers with additional income beyond the interim prices paid throughout the year.

The agreement was finalized through negotiations led by Kinyara Sugar Ltd CEO Ravi Ramalingam and Robert Atugonza, Board Chairman of the Masindi Sugarcane Growers Association Ltd (MSGAL). “The company will pay cash top ups to all our farmers that supplied Kinyara sugarcane during the 2025/2026 financial year,” confirmed Francis Mugerwa, Kinyara Sugar Ltd’s Public Relations Officer.

Payments will be directly credited to the bank accounts of eligible farmers. Specifically, those who supplied sugarcane at Shs 128,000 per ton will receive an additional Shs 1,500 per metric ton, while farmers who supplied at Shs 114,000 per ton will get a Shs 8,000 per metric ton bonus.

This structured pricing arrangement, which involves setting interim rates at the start of the financial year (July 1 to June 30) and a final review or top-up at its end, aims to stabilize farmer earnings against market fluctuations. Local officials have lauded the move, with Masindi District Vice Chairperson Bright Mugume noting its positive impact on livelihoods and business expansion. Masindi Resident District Commissioner Darius Nandinda also highlighted Kinyara Sugar’s broader contributions to community development and government revenue through employment and corporate social responsibility initiatives.

Farmer representatives, like Robert Atugonza, have encouraged growers to focus on improving agronomic practices to boost yields and increase their supply under the outgrower scheme, assuring them that end-of-year reviews provide a crucial buffer. Kinyara Sugar, which relies on approximately 8,000 registered farmers for over 60 percent of its cane supply, operates with a daily crushing capacity of 10,000 tons, currently processing around 7,500 tons daily. The current interim price for sugarcane is Shs 112,000 per ton.

Source: Nile Post