HOIMA, December 3, 2025 — Sugarcane farmers in Hoima and Kikuube districts in Bunyoro Subregion have lifted their ban on supplying cane to Hoima Sugar Limited. The suspension had been imposed in protest against the company’s continued 5 percent deductions on the value of cane deliveries.
The farmers argued that the deductions violated the Sugarcane (Amendment) Act 2023, signed into law by President Museveni in May 2025. The Amendment Act was designed to strengthen cooperation between millers and growers and abolished the long-standing 5 per cent “trash levy”, which millers had previously justified as compensation for non-cane material such as leaves and tops.
Despite the President’s directive instructing sugar millers to halt the deductions, Hoima Sugar reportedly failed to comply, prompting the Hoima Cane Growers Association [HOCAGA] to suspend supplies.
According to Max Francis Isingoma, Chairperson of HOCAGA, the organisation was forced to act after the factory’s management “turned a deaf ear” to farmers’ concerns.
The decision by the farmers to resume supplying cane was reached at a recent meeting held at Sir Tito Winyi Primary School in Kiziranfumbi Town Council, Kikuube district.
Farmers were informed by Bunyoro’s representative to the Uganda National Sugar Stakeholders Council, Robert Atugonza, that Hoima Sugar Ltd and Kyejonjo Sugar Factory had now scrapped the 5 percent deductions.
Atugonza explained that, following the farmers’ complaints, the Council leadership engaged senior managers at Hoima Sugar, resulting in an agreement to abolish the disputed levy.
“As you know, the son of the owner of Hoima Sugar Ltd is the Chairperson of the Uganda National Sugar Stakeholders Council. When you filed your complaint, the Council leadership engaged the directors of Hoima Sugar and they agreed to stop the 5 percent deduction. This matter has been resolved, and you can resume supplying your sugarcane to the company,” he said.
He praised the farmers for standing up for their rights, noting that Hoima Sugar had been earning an estimated Shs 2.8 billion annually from the deductions.
“A farmer has been losing Shs 640 for every tonne of sugarcane supplied. If a farmer delivers 100 tonnes and the company deducts 5 percent, that farmer loses Shs 640,000. This is a substantial amount that could help purchase fertilisers. So the farmers have achieved a significant victory,” he added.
Isingoma welcomed the abolition of the deduction and thanked the Uganda National Sugar Stakeholders Council for defending farmers’ interests. He stressed that growers already face numerous challenges, including labour costs, fertiliser expenses and other inputs, making the 5 per cent deduction particularly unfair.
“You have given us good news. We convened this meeting to inform our fellow farmers of the association’s decision regarding supplies. Now that you have confirmed that Hoima Sugar Ltd has stopped charging the 5 percent levy, we will resume supplying cane to the company,” he said.
Pastor Richard Kavima, Vice Chairperson of the HOCAGA, also thanked Museveni for his intervention, which ultimately led to the deduction being removed.
“We thank God that what we have been fighting for has been achieved. We also thank our President for removing the 5 per cent that was being deducted from every tonne delivered to Hoima Sugar Ltd and other sugar companies. Although they were instructed to stop the deductions in May 2025, they had stubbornly refused to comply,” he said.
Hoima Sugar Ltd’s Agriculture Manager, Rajasekaran Ramaddu, confirmed that the company has now abolished the 5 percent deduction and promised continued cooperation with farmers.
Sugarcane growing is a major economic activity in the Hoima and Kikuube districts, largely driven by the presence of Hoima Sugar Limited. The factory has brought economic opportunities, but also significant controversy regarding land use and food security.
https://thecooperator.news/minister-orders-arrests-over-alleged-encroachment-on-hoima-sugar-land/
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