A pivotal meeting focused on the welfare of sugarcane farmers in Missenyi District and the operations of Kagera Sugar Limited (KSL) is currently underway. Photo: Courtesy
By Mutayoba Arbogast, Bukoba
Small-scale sugarcane outgrowers in Missenyi Division, Missenyi District, are finally breathing a sigh of relief after reaching an agreement with Kagera Sugar Limited (KSL) to resume purchasing their crops. The agreement comes after the company halted buying sugarcane from farmers, citing the government’s indicative price as too high to sustain their operations.
The breakthrough was made during a weekend meeting led by Missenyi District Commissioner, retired Colonel Hamis Maiga, at the Missenyi District Council Conference room. The meeting brought together the management of Kagera Sugar Limited, headed by CEO Sanjeev Mishra, as well as representatives from Savings and Agricultural Marketing Cooperative Societies (AMCOS), Missenyi District Council Chairperson Projestus Tegamaisho, and Executive Director John Paul Wanga.
Farmers were deeply concerned about incurring significant losses for weeks as KSL refused to buy their sugarcane. The factory had initially announced it would purchase a ton of sugarcane at Sh65,000, but outgrowers demanded Sh80,000.
When the government set an indicative price of Sh75,000 per ton, KSL still argued that this was unsustainable for their business, citing fluctuations in the sugar market that would lead to financial collapse. As a result, KSL stopped buying sugarcane from the farmers, leaving them in a precarious situation.
The farmers’ frustrations escalated, with no solution in sight. Nkenge legislator Florent Kyombo intervened and planned to raise the issue with Agriculture Minister Hussein Bashe and officials from the Sugar Board of Tanzania (SBT). Meanwhile, Missenyi District Councilors tasked Chairperson Projestus Tegamaisho with traveling to Dar es Salaam to meet with KSL's owner, Nassoro Seif, and CEO Sanjeev Mishra to discuss the challenges faced by both parties.
The meeting with the factory management in Dar es Salaam led to productive discussions, and the meeting chaired by the District Commissioner was called to convey the results to the farmers. During the meeting, it was announced that KSL had agreed to resume purchasing sugarcane, with an estimated 191,000 tons currently ready for harvest. Farmers were informed that they need to deliver 1,200 tons of sugarcane per day, which equates to 36,000 tons per month, while ensuring that the sugarcane reaches the factory within 24 to 36 hours to maintain its quality.
In response to farmers’ complaints about labor shortages, KSL committed to providing 200 laborers to help with cutting sugarcane, as many farmers reported that their workforce had dispersed due to the prolonged buying halt. However, farmers were also encouraged to continue organizing their own labor force to ensure consistency in their operations.
Throughout the meeting, the importance of maintaining sugarcane quality was heavily stressed. Farmers were warned about the risks of wildfires, which can drastically reduce the quality of the sugarcane. It was agreed that any sugarcane affected by fire would undergo participatory quality testing, allowing farmers to be involved in the process and ensuring transparency.
There were also discussions about transitioning to new sugarcane seeds, which are expected to yield better results and improve productivity. Farmers will be given time to exhaust their current seeds before switching to the new varieties. In the meantime, education programs will be initiated to prepare farmers for the introduction of the new seeds and to ensure they understand the benefits of cultivating these high-yield crops.
Further meetings have been scheduled with individual out-growers to establish strategies for improving services and ensuring that both farmers and KSL benefit from the partnership. The hope is that such discussions will prevent future disruptions and foster a stronger relationship between KSL and the outgrowers.
Tanzania currently produces around 342,000 tonnes of sugar annually, while the national demand stands at approximately 630,000 tonnes, accounting for both household and industrial use. To fill this gap, the government has been spending heavily on importing sugar.
The resumption of sugarcane purchasing by Kagera Sugar is expected to bring much-needed relief to farmers in Missenyi, as well as boost local production. The agreement not only secures the farmers’ livelihoods but also plays a crucial role in stabilizing the local economy, while the long-term hope remains to reduce the country’s reliance on sugar imports.