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Kampala, Uganda | JULIUS BUSINGE | The government has intervened in Busoga’s sugarcane sector, setting a minimum price of Shs125,000 per ton of sugarcane following complaints from out-growers over low prices.
The decision was reached at a meeting held on Friday, December 19, 2025, in Kampala between officials from the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and six sugar millers operating in Busoga.
The meeting, chaired by the Minister of Trade, Industry and Cooperatives, Francis Mwebesa, was attended by the State Minister for Cooperatives and MP for Bulamogi North West County, Frederick Ngobi Gume, the Chairperson of the National Biofuels Committee and former minister Daudi Migereko, ministry officials, and representatives of Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar, and Bugiri Sugar.
Mwebesa noted that the ministry had received complaints from sugarcane outgrowers who were taking home as little as Shs90,000 per ton, far below the formula set under the Sugar Amendment Act 2025. “We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and directly impact farmer livelihoods, mill supply stability, and social and political stability in sugarcane-growing areas,” Mwebesa said.
The complaints primarily targeted GM Sugar, Kaliro Sugar, Bugiri Sugar, and Kamuli Sugar, whose prices were reportedly below the statutory formula. Farmers also raised concerns about the continued 5 percent deduction for trash, which the Sugar Industry Stakeholders Council had already eliminated. Mwebesa emphasized that low returns for farmers relative to input and transport costs threaten long-term production, investment, and sector resilience.
During the meeting, the minister questioned the timing of the price reductions, noting that lowering prices during the election campaign could undermine support for the National Resistance Movement. “Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the Sugar Amendment Act 2025,” he said, urging millers to refrain from practices that hurt farmers’ incomes.
Henry Kata of GM Sugar explained that fluctuating prices result from factors beyond the statutory formula, including differences in production costs across mills. He called on the ministry and the Sugar Industry Stakeholders Council to review these challenges and provide guidance.
In response, Minister Gume requested that millers with low prices revise their rates upwards for a period of two months, pending a comprehensive review of sugarcane pricing nationwide. “This measure will help ensure social and political stability in Busoga during the current political period,” he said. Daudi Migereko also reminded millers that the NRM government has consistently partnered with the industry to maintain sector stability, urging compliance with the government’s request.
The sugar millers, represented by Akash of GM Sugar, Yogesh Agri, and Ismail Nasifu of Kamuli Sugar, unanimously agreed to set a minimum price of Shs125,000 per ton of sugarcane across Busoga for the next two months. Rajbir Singh Rai, Chairperson of the Sugar Industry Stakeholders Council and representative of Kinyara Sugar, urged all millers to comply with the new law and adhere to the statutory pricing formula to maintain harmony within the sector.
The agreement is expected to stabilize sugarcane earnings for out-growers in Busoga and support continued production and investment in the region’s sugar industry.
