The Ugandan government is seeking supplementary budget to pay tobacco farmers in Bunyoro sub-region UGX 11.3 billion (USD 3.04 million), reports the Independent.

The farmers had previously been denied payments by the tobacco companies that had reportedly contracted them. There are seven companies involved who purchased tobacco leaf and allegedly had contracts from the farmers stating they would be paid once the supply had been completed.
The argument between the companies and tobacco growers has been ongoing for more than six years with the biggest tobacco consumer, BAT Uganda, closing its last factory in the country in 2013, reports the Independent. Other companies such as Continental Tobacco and NIMATIBACK are thought to owe farmers UGX 7.3 billion (USD 1.96 million) and UGX 4 billion (USD 1.08 million) respectively.
The Minister of Finance, Planning and Economic Development Matia Kasaija said that the claims have been verified and that compensation will be made to the farmers in two instalments starting this financial year. According to the Independent, the government has ruled that the tobacco companies must pay the money to the government or they will be sued in the courts of law.
New measures have also been put into place to prevent this kind of problem from happening in the future. Companies will now have to prove how much they are ready to spend per season in a performance bond.