Politics: Gov’t sets Shs 125,000 minimum cane price to protect Busoga farmers
KAMPALA, December 24, 2025 — Government has intervened in the sugarcane sector, directing millers to pay a minimum of Shs125,000 per tonne following complaints from out-growers over persistently low prices offered by millers operating in Busoga Subregion.
The decision was reached during a meeting held days ago in Kampala, bringing together officials from the Ministry of Trade, Industry and Cooperatives [MITC], the Sugar Industry Stakeholders Council, and six sugar millers operating in Busoga.
The meeting was chaired by the Minister of Trade, Industry and Cooperatives, Francis Mwebesa, and attended by the State Minister for Cooperatives Frederick Ngobi Gume.
Also present were the Chairperson of the National Biofuels Committee and former minister Daudi Migereko, senior ministry officials, and representatives from Sugar Corporation of Uganda Limited [SCOUL], Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar, and Bugiri Sugar.
Mwebesa said MTIC had received numerous complaints from sugarcane out-growers who were earning as little as Shs 90,000 per tonne, far below the pricing formula prescribed under the Sugar Amendment Act 2025.
“We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid. These directly affect farmer livelihoods, mill supply stability, and social and political stability in sugarcane-growing areas,” Mwebesa said.
The complaints were largely directed at GM Sugar, Kaliro Sugar, Bugiri Sugar, and Kamuli Sugar, whose prices were reportedly below the statutory formula. Farmers also protested the continued five percent trash deduction, which had already been abolished by the Sugar Industry Stakeholders Council.
The minister warned that poor returns for farmers, especially in the face of rising input and transport costs—threaten long-term production, investment, and resilience in the sector.
Mwebesa also questioned the timing of the price reductions, noting that lowering sugarcane prices during an election period risked undermining support for the ruling National Resistance Movement [NRM].
“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 desist from practices that erode farmers’ incomes.
Responding to the concerns, Henry Kata of GM Sugar said price fluctuations were influenced by factors beyond the statutory formula, including variations in production costs among mills. He called on the ministry and the council to review these challenges and offer clear guidance.
To address the immediate crisis, Minister Gume directed millers offering lower prices to revise them upward for a two-month interim period, pending a comprehensive national review of sugarcane pricing.
“This measure will help ensure social and political stability in Busoga during the current political period,” said Gume.
Migereko reminded millers of the NRM government’s long-standing partnership with the sugar industry, urging them to comply with the government’s directive in the interest of sector stability.
Representing the millers, Akash of GM Sugar, Yogesh Agri, and Ismail Nasifu of Kamuli Sugar unanimously agreed to implement a minimum price of Shs125,000 per tonne of sugarcane across Busoga for the next two months.
Meanwhile, Rajbir Singh Rai, Chairperson of the Sugar Industry Stakeholders Council and representative of Kinyara Sugar, urged all millers to comply fully with the new law and adhere to the statutory pricing formula to maintain harmony and sustainability in the sector.
The agreement is expected to stabilise earnings for sugarcane out-growers in Busoga for at least two months, as agreed by government and millers.
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