Bunyoro Farmers Sue BAT

Source from:  New Vision (Kampala) 04/03/2005

Tobacco farmers from Bunyoro have sued the British American Tobacco (BAT) seeking compensation for tobacco grown during the 2004 season, reports Hillary Nsambu. They are also seeking review of the grading system for the crop, which they said was not fair. The farmers said BAT had signed a contract to support them grow and sell their tobacco in the 2004 season. They said during that year, they grew tobacco in Hoima and Masindi districts under the company's direct supervision and technical control. The farmers said under the contract, BAT was to deduct the cost of the input supplied to them from the price to be paid to them for the tobacco sold. They said in December last year, BAT unilaterally decided to stop buying their tobacco, saying the company had hit its purchase target and that it lacked immediate external market for the tobacco. The farmers said by refusing to buy the tobacco, BAT breached the contract. By press time on Tuesday, BAT had not filed a defence. Enditem