Tea farmers in Buhweju district are seeking compensation of over three billion Ugandan Shillings from Igara Growers Tea Factory, alleging non-payment for green tea leaves supplied over a four-month period. This demand puts a spotlight on the economic crisis faced by the community, where tea serves as the primary source of income.
Nicholas Abenaitwe, a tea farmer, voiced the frustrations of the community, stressing that the prolonged absence of payment for four months is causing significant economic strain. For these farmers, who rely solely on tea for income, the situation is dire.
Jonathan Muhanguzi, another tea farmer, highlighted the financial burden imposed by high-interest loans acquired from cooperative societies. Despite the factory successfully processing and selling their tea in the auction market in Mombasa, delayed payments are exacerbating their financial difficulties.
Muhanguzi disclosed that considering the international expansion of the factory, Buhweju tea farmers are contemplating separating from Igara Growers Tea Factory and managing their facility independently.
Ronald Rwankangi, the Director of Igara Growers Tea Factory, shed light on the financial challenges the factory is confronting. He attributed the issues to price fluctuations, citing a decline in the price of a kilogram of green leaf from 600 to 200, and subsequently to 150. The factory is currently operating at a loss of 4 cents, with earnings only covering essential needs.
The Buhweju tea factory, established in 2006 as a presidential pledge, processes over 17 million kilograms of green leaf annually, with 2,400 shareholders. Igara Grower’s Tea Factory, which owns both Igara and Buhweju factories, boasts over 7,000 shareholders and close to a 50 billion Shilling turnover.
