Kinyara Sugar Ltd has declared a Shs 5.5 billion cash top-up for farmers who supplied sugarcane to the company’s factory during the 2025/2026 financial year.The cash top-up is an additional payment made to contracted farmers at the end of the financial year, over and above the interim price paid for sugarcane deliveries during the year.As part of its annual pricing mechanism, Kinyara Sugar holds end-of-year consultations with representatives of registered outgrowers to review the sugarcane price for the concluding financial year and agree on an interim price for the new financial year.The discussions were led by Kinyara Sugar chief executive officer Ravi Ramalingam on behalf of management and Robert Atugonza, the board chairman of the Masindi Sugarcane Growers Association Ltd (MSGAL), representing the farmers.Kinyara operates a collaborative pricing model under which management and farmers jointly agree on an interim price for every metric tonne of sugarcane supplied to the factory.The interim price may be reviewed during the course of the financial year, depending on prevailing market conditions, before a final price or cash top-up is agreed upon at the end of the year.Following the July 2 consultations, both parties unanimously agreed that farmers who supplied sugarcane at an interim price of Shs 128,000 per metric tonne will receive a cash top-up of Shs 1,500 per tonne, while those who supplied cane at Shs 114,000 per metric tonne will receive a top-up of Shs 8,000 per tonne.Besides direct payments to farmers, contractors and other service providers, Kinyara Sugar continues to invest in community development through the rehabilitation and maintenance of thousands of kilometres of roads, provision of safe and clean water, and support for education, healthcare and other social services, according to Masindi Resident District Commissioner (RDC) Darius Nandinda.The company works with approximately 8,000 registered outgrowers, who supply more than 60 per cent of the sugarcane processed by the factory.Kinyara Sugar has an installed crushing capacity of 10,000 tonnes of sugarcane per day, although it currently processes an average of about 7,500 tonnes daily.For the new financial year, Kinyara Sugar has set an interim sugarcane price of Shs 112,000 per metric tonne. As has been the company’s practice, the price will be reviewed at the end of the financial year in line with prevailing market conditions.The post Kinyara Sugar to pay farmers extra Shs 5.5bn cash top-up appeared first on The Observer Media Ltd.