Alliance One Tobacco Company has finally bowed to pressure exerted from Hoima district Local government and started buying excess Tobacco from farmers.
In January 2019, Alliance One Tobacco Company contracted more than 700 farmers in Hoima district to grow tobacco.
The company extended loans in form of farm inputs, seeds and fertilizers to the farmers recoverable after the sale of their tobacco.
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.
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 Shillings 1 billion for the Tobacco supplied to the different outlets.
Now, Hoima LC V Chairperson, Kadir Kirungi, says after reaching a mutual Understanding with the Company managers, they resolved that the Company begins buying the remaining Tobacco beginning this week.