Lugazi, Uganda | THE INDEPENDENT | The State Minister for Trade, Industry and Cooperatives Fredrick Ngobi Guma has advised sugarcane transporters in Lugazi Municipality to consider taking loans from Micro Finance Support Center to avoid high rates of interests.
The minister made the remarks while meeting haulers who were complaining about alleged unfair trade practices mounted on them by the Sugar Corporation of Uganda Limited Lugazi -SCOUL in Lugazi Municipality, Buikwe district.
Transporters claim that the failure to pay back loans taken from banks and moneylenders to buy most of the trucks used in the transportation business arises because they are denied chance to work on daily basis.
Julius Katerevu, the Chairperson for Lugazi Sugarcane Transporters Cooperative Society-LSTCS claims that SCOUL buys sugarcane directly from farmers using proxies to kick transporters out of business, yet previously it was them buying from farmers and sell to the factory.
Katerevu further notes that most of the transporters are also farmers who are now suffering double tragedy due to plummeting market prices. He reveals that most of them have lost their plantations to landlords from whom they hire land for growing sugarcane. Besides, they have failed to return children to schools.
Peter Walugembe, one the truck owner says their earnings are below average despite investing a lot in transporting sugarcanes. For one to transport cane to the factory, is required to process permits from the factory but transporters claim the factory takes long to give them out.
However, the State Minister for Cooperatives, Guma says since Lugazi transporters have a registered cooperative, they should resort to taking loans from micro finance support center to avoid walking on tenterhooks of loan sharks.
Guma says various line ministries have taken steps to engage various factories on the transportation of sugarcane.
Recently, Patrick Dhikusooka, the company senior manager in charge of administration says most transporters have adamantly declined to acquire tax identification numbers to process for them tax certificates.
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