Maize Suppliers Block PRO Industries Over Shs3.5 Billion Debt

Trucks belonging to maize suppliers are currently parked outside PRO Industries Ltd in Luweero District, bringing operations at the factory to a standstill. The disgruntled suppliers are demanding payment for approximately 4,000 tonnes of maize they delivered to the company over the past two months, with outstanding dues reportedly reaching Shs3.5 billion.

The traders claim that PRO Industries has failed to provide a satisfactory explanation for the prolonged delays in payment, despite repeated follow-ups. This situation has put many suppliers in a precarious financial position, particularly those who took out loans to procure and transport the maize.

Adding to the complexity, some suppliers noted that they sold their maize when market prices were lower. They are now requesting either payment at the current, higher market rates or the return of their maize. The financial strain is significant, with some suppliers highlighting the difficulties faced by those who borrowed capital.

The suppliers have vowed to maintain their protest until their payments are settled or a resolution is reached. Police have been deployed to the scene to manage the situation and prevent any escalation of conflict.

This dispute highlights the broader challenges faced by maize traders in Uganda, including volatile commodity prices, high transportation costs, and limited access to working capital. The suppliers are appealing to the government and local district authorities for intervention to mediate a resolution with PRO Industries.

As of the time of reporting, PRO Industries had not released an official statement addressing the allegations, though company officials were present at the site attempting to de-escalate the protest. The factory, which produces ethanol and extra-neutral alcohol, was commissioned by President Museveni in December of the previous year.

Source: Nile Post