Gov’t to protect farmers as sugarcane prices fall
The sugar industry has been one of the fastest growing industries in Uganda, contributing over Shs 300 billion in annual taxes and directly employing over 100,000 people
KAMPALA, August 16, 2024 – Government intends to support sugarcane farmers in the country to add value to their produce as a measure against price fluctuations.
The Ministry of Trade, Industry and Cooperatives [MAAIF] together with that of Agriculture, Animal Industry and Fisheries [MAAIF] will support farmers through their cooperatives to embark on value addition so that they can earn more money. Currently sugar millers in the country dictate the prices at which farmers sell their sugarcane.
Addressing the House recently, Prime Minister Robinah Nabbanja said registration is the first step in organising the cane farmers so that they can be financed by government to add value to their cane.
“Registration of these farmers will enable them to receive government support through the Parish Development Model, extension services from Ministry of Agriculture, joint marketing of cane and self-regulation,” said Nabbanja.
The Uganda Sugar Manufacturers Association [USMA] reported in January 2024, that they offer between Shs 135, 000 to Shs 240,000 per tonne of sugarcane, but some farmers in the countryside report being paid as low as Shs 120,000 per tonne.
According to Nabbanja, the decline in sugarcane prices is attributable to farmers growing sugarcane without a prior arrangement with millers.
The Premier added that the Trade ministry will support the cooperatives to produce ethanol, paper and fertilisers from sugarcanes for better income.
Other causes, she said, is due to negative regional trade practices.
“The imported sugar from global leading producers such as Brazil and India is much cheaper and renders Uganda’s sugar uncompetitive in the East African Community market. When there are external forces that distort the market, the prices drop,” said Nabbanja.
The Prime Minister spoke in response to a question by Bujenje County legislator, Kenneth Kiiza on low sugarcane prices across the country.
The sugar industry has been one of the fastest growing industries in Uganda, contributing over Shs 300 billion in annual taxes and directly employing over 100,000 people.
The industry produces 600,000 metric tonnes of brown sugar and 75,000 metric tonnes of industrial refined sugar, and also produces over 150 megawatts of electricity from sugarcane pulp of which 70 megawatts are supplied to the national grid.
Sugarcane is mainly grown in the subregions of Busoga, Bunyoro, Buganda, and Acholi where private sugar factories have been established to purchase the raw materials from the farmers, organised in associations, and cooperatives.
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