Bunyoro sugarcane farmers appeal to Museveni for Shs 50bln support
MASINDI, June 10, 2025 – Sugarcane farmers from the Bunyoro Sub-region have appealed to President Yoweri Museveni to capitalise their soon-to-be-established Savings and Credit Cooperative Organisation [SACCO] with a grant of Shs 50 billion.
Operating under the umbrella body Masindi Sugar Farmers Association Limited [MASGAL], the farmers resolved during their Annual General Meeting held in October last year to form a SACCO, with an initial share capital of Shs 400,000 and a membership fee of Shs 30,000.
Robert Atugonza, Chairperson of MASGAL, revealed that the board had already secured interest-free financial support from Kinyara Sugar Limited to aid the SACCO’s establishment.
“We need to institutionalise the sugarcane farmers’ SACCO,” Atugonza said. “My hope is that we embrace this initiative, purchase shares, and unite as members. Only through collective action will we be taken seriously by investors and the government.”
In a formal memorandum to President Museveni, the farmers further requested that the Uganda Revenue Authority [URA] cease collecting taxes on sugarcane, citing it as a raw material for sugar production.
“Farmers continue to be burdened by URA’s taxation, despite the law exempting agricultural produce from tax [Section 135 [5[[c] of the Income Tax Act]. This aligns with your 2019 Executive Order suspending the 1 percent tax on sugarcane,” the memorandum states.
“The indirect tax on each tonne of sugarcane sold amounts to over Shs 75,000—more than half of the farmer’s gross income,” they added.
The farmers also urged the government to fulfil its promise of providing 40 tractors to support sugarcane farming in Bunyoro and requested a meeting with the President to discuss the challenges and opportunities in the sugarcane industry, which has become a vital livelihood for many in the region.
Call for subsidised agricultural inputs
The farmers expressed concern over declining soil fertility and low yields per hectare, attributing the trend to the high cost of fertilisers and limited access to affordable financing.
“Most farmers cannot afford fertilisers, and those who manage to access loans often face interest rates exceeding 32 percent. This results in reduced cane production, lower farmer income, decreased sugar output for millers, and diminished tax revenue for the government,” the memorandum reads.
They called for government support in making quality fertilisers more accessible and affordable.
There are an estimated 25,000 sugarcane farmers in Bunyoro cultivating over 50,000 hectares of land and supplying cane to at least five sugar mills, including Kinyara Sugar Limited, Kiryandongo Sugar Limited, Bwendero Sugar Limited, Hoima Sugar, and Kyenjojo Sugar.
The farmers are located across the districts of Masindi, Kiryandongo, Hoima, Kikuube, Kakumiro, Kagadi, Kyenjojo, and Kyankwanzi.
Praise for Sugar Amendment Act
The farmers also commended President Museveni for signing the Sugar Amendment Act 2023, into law, noting that it would greatly benefit smallholder growers.
“The President signed the bill before its beneficiaries because he wanted both sugarcane farmers and millers to engage in dialogue and agree on ways to grow and develop the sugar industry,” Atugonza said during a press briefing held on Sunday at Miika Eco Resort in Hoima City.
“The new law promotes fairness, transparency, and active stakeholder participation in the sugar sector,” he added.
https://thecooperator.news/museveni-signs-sugarcane-bill-into-law/
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