Parliament finally passes Sugarcane Bill
The lawmakers approved a recommendation of the Committee on Trade, Cooperatives and Industry, which first considered the Bill, to replace the Sugar Board as established in the Sugar Act, 2020 with the Council
KAMPALA, April 16, 2025 –– Parliament has passed the Sugarcane [Amendment] Bill, 2023 providing for self-regulation of the sugarcane industry by a stakeholder council.
The Sugarcane [Amendment] Bill, 2023 was passed during plenary sitting chaired by Deputy Speaker Thomas Tayebwa yesterday.
The lawmakers approved a recommendation of the Committee on Trade, Cooperatives and Industry, which first considered the Bill, to replace the Sugar Board as established in the Sugar Act, 2020 with the Council.
The Council will be composed of a Chairperson, four representatives of sugar cane outgrowers, and another four representatives of sugar cane millers, and the Permanent Secretaries of the Ministries of; Agriculture, Animal Industry and Fisheries; Finance, Planning and Economic Development and that of Trade, Industry and Cooperatives.
According to the report of the Committee, presented by the Chairperson, Sylvia Nayebale, the new law mandates the council to consider the applications of millers and make recommendations to the Minister to grant or not to grant a license.
In case of any grievances, aggrieved parties will seek redress in court, according to the new law.
“The applicant shall within 30 days of receipt of the decision of the council, apply to a court of competent jurisdiction to review the decision of the council,” Nayebare said.
Additionally, a sugar levy will be imposed on millers of sugar cane to fund the activities of the Council.
“The levy shall be prescribed by the Minister, by regulations, in consultation with the council,” the law reads in part.
The legislators also passed an amendment of the formula to determine the minimum price of sugarcane per tonne, moved by Florence Asiimwe, Masindi district Woman Representative, saying that the new proposal was fairer in determining the sugarcane prices.
Minister of State, Trade [Industry], David Bahati agreed with the amendment, saying that government has been working towards harmonising the formula.
Bahati added that the regulations will be ready, within four months, as recommended by the committee.
Deputy Speaker, Thomas Tayebwa said that the amendments were as a result of negotiations between millers and out growers.
“Even if we have been putting the Minister to task to explain the issue of the sugar sector, there was no basis. The basis was that formula,” Tayebwa said.
The Sugarcane [Amendment] Bill, 2023 was tabled for first reading by Minister Bahati, during plenary sitting, on December 5, 2023.
Section 13 of the Sugar Act established the Sugar Board as the body responsible for implementing the Act. The Board could however not be established because of the Government Policy on rationalisation which restricts the establishment of statutory bodies.
The Bill now seeks to amend the Act to establish the sugar industry stakeholder council which would comprise representatives of stakeholders in the sugar industry including cooperatives and associations, and be funded by a sugar levy charged on millers.
Several African countries have sugar councils or organisations that regulate and support their sugar industries. These include South Africa, Kenya, Tanzania, and Eswatini, among others. These councils often play a key role in managing sugarcane farming, milling, and the overall sugar value chain within their respective countries.
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