About 1200 Sugarcane farmers will receive more money this year as the price of sugarcane has increased from 13000frw per tonne last year to 15200frw this year.

As a result Rwanda’s sole miller Kabuye Sugar Works this week is paying the farmers a bonus worth   $ 1 million dollars.

According to Rao Mahakali, General Manager for Kabuye Sugar Works, sugarcane price is determined by sugar sales and sugar output which varies from year to year.

"This means cultivators are getting more money this year because the price has increased. This will encourage them to plant more sugarcane,” Mahakali told Business Times in an interview on Monday.

He also said this would in turn benefit Rwanda’s sole miller which has been operating below capacity.

While Rwanda’s domestic market requires about 22,000 tonnes of sugar every year and the total production of Kabuye Sugar Works is currently projected to reach 14,500 tonnes this year.

"It also helps the farmers to get more money if the sugar price is high. This is the highest ever we have paid per tonne,” he said.

Kabuye Sugar Works largely depends on supplies from out growers cultivating farms on over 2,200 hectares.
However Mahakali also revealed that the firm has identified new farmers in Rwamagana, Ruhengeri and some parts of Mutara province that are ready start growing sugarcane.

He also mentioned that the private cultivators are given cane seeds free of charge and technical assistance in cultivation by the factory.

"Sugarcane is a very profitable cash crop. We offer cane seeds and free transport when the crop is ready for milling,” Mahakali said, mentioning that this is an incentive for farmers to plant the crop. 

With support from the government, the firm has managed to increase cane cultivation from 200 hectares in 1998 to 2,200 hectares today.

The firm’s current production capacity over the years has grown to 14,000 - 15,000 tonnes of sugar every year.

Owned by Ugandan based Madhvani group of companies, the firm employs some 5,000 people directly and indirectly.

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