The sugarcane growers in Jinja district and Busoga at large have welcomed the establishment of a new sugar processing plant by Alam Group Company in Jinja.
The farmers say that the price for cane crop was low and they expect the competition of Alam Group with Kakira and Lugazi sugar factories to improve the price for sugar cane from out growers.
The Ministry of Trade licensed Alam Group to setup a Factory in Jinja and the company will operate on 80 acres of land.
Sugarcane plantation
In projection, Alam Group will contribute 3 billion annually to the national income in form taxes and employ over 3000 workers, hence contributing to job creation.
However the license to Alam Group has met resistance from Kakira Sugar Works Ltd, the leading sugar producer in Uganda.
The Managing Director of Kakira Sugar Company Mayur Madhivani has petitioned the office of the President and the Ministry of Trade for allocating Alam Group (competitors) in a radius of 25 kilometres as it contravenes the agreement Kakira signed with the government.
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