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Alliance One Bows to Pressure, Begins Buying Excess Tobacco

The company contracted more than 700 farmers in Hoima district in January 2019, to grow tobacco and granted them loans which would be recoverable upon the sale of their produce.

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Alliance One Tobacco Company has bowed to pressure from Hoima district Local government and started buying excess Tobacco from farmers.

The company contracted more than 700 farmers in Hoima district in January 2019, to grow tobacco and granted them loans which would be recoverable upon the sale of their produce.

Farmers grew the tobacco as required by the company and delivered it at different outlets operated by the Company for purchase.      

However, more than 56 tons of tobacco supplied by the farmers remained at different outlets of the company without being paid for leaving the farmers stranded. This compelled Hoima district authorities to suspend the company operations in November last year.   

The District Security Committee, Production Department, Commercial Officer and LCV Chairperson, Kadir Kirungi, have since been battling the company to buy the remaining Tobacco. They warned to block the company from transacting any business this financial year unless they buy the remaining Tobacco. 

The company owes tobacco farmers over 1 billion Shillings for the Tobacco supplied to the different outlets.  Now, Hoima District Chairperson Kadir Kirungi says that after reaching a mutual Understanding with the Company managers, they resolved that the Company begins buying the remaining Tobacco beginning this week.

He told URN on Monday that the Alliance One Team had started buying Tobacco from farmers in Kigorobya sub-county and will move to Buseruka, Buhanika, Kyabigambire, Kabale, Bugambe and Bombo sub-counties.

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Andrew Kasambeko, the Manager Alliance One Tobacco Company confirmed to URN that they had indeed started buying the remaining Tobacco. “As am talking now our officials are at different Tobacco outlets buying the remaining Tobacco those farmers supplied in 2019,” he said.

Kasambeko explained that most farmers grew more tobacco than what they contracted them to do, adding that some farmers contracted other farmers to grow tobacco on their behalf, which contravenes the contract.  

In January 2019, the Ministry of Trade halted the operations of Continental Tobacco Company Limited, NIMA Tobacco Company Limited and Tropical Tobacco Company limited in Hoima district for alleged failure to pay farmers over Shillings 2 Billion for tobacco supplied in 2018. 

Close to 1,300 farmers supplied tobacco to the three companies.   

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