Ugandan coffee exporting company Hampage (U) Ltd has been accused of breaching a $933,046 coffee supply contract by a Singaporean firm .
Documents seen by The EastAfrican show that in May 2021, Singaporean firm Suncof Global Pte Ltd entered into a contract with Hampage to buy 747,000kg of natural robusta green coffee (FAQ Quality) valued at $933,046 from Uganda, with the Kampala-based coffee dealer acting as an agent.
But Hampage allegedly failed to abide by the agreed terms and defaulted in supplying the consignment.
According to correspondence between the two firms and the coffee regulator, Uganda Coffee Development Authority (UCDA), Hampage delivered 663,650kg of graded coffee valued at $839,818.21 and defaulted on 83,350 kg of coffee worth $93,227.79. This is despite having been paid the full amount of the contract totalling $933,046, which included processing and export handling charges.
Now, Suncof, which is 100 percent owned by one of Indias largest coffee roasting firms, Vayhan Coffee Ltd, is demanding delivery of the outstanding coffee consignment or a refund of $93,227.79 plus interest at the rate of 24 percent per annum. According to the agreement, Hampage was to supply all coffee by June 10, 2021. Under the arrangement, Hampage was to procure coffee with a maximum of 14 percent moisture content , process it , grade, colour-sort, and hand it over to Suncof on free-on-truck (FOT) terms with all the grades.
The prices negotiated and agreed included FAQ Coffee ($1.18 per kg), processing without colour-sorting ($0.038 per kg), colour-sorting ($0.016 per kg) and export documentation ($0.07 per kg). Suncof argues that the failure by Hampage to deliver on its contractual obligations has put its operations in Singapore in a difficult position, with risks of shutting down due to a shortage of coffee.
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