Uganda: Outgrowers Ask BATU to Pay Through SACCOs

Source from:  The New Vision 08/09/2011

District leaders have asked British American Tobacco Uganda (BATU) to pay its out-growers through SACCOs to reduce crime and domestic violence. Rukungiri district vice-chairperson Hellen Kabajungu said BATU's inability to pay farmers through banks was fuelling domestic violence. She made the remarks during a recent stakeholders' meeting organised by BATU at Savana Resort Hotel in the North Kigezi tobacco growing zone. The zone covers Kanungu and Rukungiri districts. "We have seen families breaking up because couples fail to agree on how to share the proceeds from tobacco production. BATU mainly recognises men as registered farmers, yet the cultivation is done by women," Kabajungu said. She noted that there were SACCOs in every sub-county, adding that it would be easier and safer for farmers to be paid through them. Kabajungu was supported by the Kanungu district Police commander, Moses Ssemakula, who said crime increased in tobacco-growing areas during the payment season. "Why do we have to keep awake protecting people who have millions of shillings in their houses instead of keeping it in the banks?" he asked. BAT corporate regulatory affairs coordinator Solomon Muyita said the company stopped paying farmers through banks after their money was frozen in the defunct Uganda Cooperative Bank. "We are negotiating with Equity Bank to open branches in our tobacco-growing areas so that we can streamline payments," Muyita explained. A farmer registered with BATU grows a minimum of one acre of tobacco and on harvest can earn up to sh5m. Enditem