President Museveni orders immediate establishment of Sugar Council to stabilize Uganda’s Sugar Industry 

UGANDA – Ugandan President Yoweri Kaguta Museveni has directed the immediate operationalization of the long-delayed Sugar Council, citing its critical role in stabilizing the country’s sugar industry and safeguarding stakeholder interests. 

The directive was issued during a meeting with sugarcane farmers and millers, where Museveni addressed key concerns surrounding price instability, profitability challenges, and unresolved disputes within the sector.

He emphasized that the matter must be resolved without delay, setting August 11 as the deadline for the council’s establishment. 

The Sugar Council was instituted under the Sugar Act of 2020 and is tasked with regulating the industry, enforcing fair pricing mechanisms, and mediating disputes among growers, millers, and other stakeholders.  

However, continued delays in operationalizing the council have fueled frustrations, particularly in Eastern Uganda, a key sugarcane-producing region. 

Farmers at the meeting raised concerns about low sugarcane prices and rising production costs. Museveni acknowledged the challenges and assured them that the government would work to ensure fair and stable earnings for growers.  

He also criticized the inefficiencies of small-scale sugarcane farming, noting that cultivating sugarcane on plots as small as two to five acres often results in low profitability. 

“Farming sugarcane on just two acres is not profitable enough. One would struggle to earn even four million shillings from five acres,” the president said, urging farmers to reevaluate their production models for better financial returns. 

As part of efforts to empower farmers, Museveni announced that the government would acquire the Mayuge Sugar Factory for the benefit of sugarcane farmers in the Busoga region.  

This move is in line with a prior government pledge to establish a sugarcane processing facility for the region’s farmers. The farmers granted approval for the government to initiate negotiations for the factory’s purchase. 

Additionally, the president revealed that the cabinet would deliberate on the future of CN Sugar Ltd and Shakti Sugar Ltd, both of which were closed due to operational issues. He said the matter would be addressed in the next cabinet session on Monday. 

Budugo Isa, Chairperson of the Uganda National Association of Sugarcane Growers, raised concerns over the continued 5% levy on sugarcane delivered to factories, a charge that was expected to be scrapped under the new legislation.

Museveni directed that the levy be immediately halted and called on millers to reject sugarcane mixed with husks and tops. 

Minister of Trade, Industry, and Cooperatives, Francis Mwebesa, confirmed that new regulations would be enacted to enforce the president’s directives. He also announced that funds had been secured to compensate suppliers of the Atiak Sugar Factory, with payments scheduled for the following week. 

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