HOIMA CITY, February 17, 2026 — Sugarcane farmers from the Bunyoro and Tooro sub-regions, under their umbrella body, the Bunyoro Tooro Sugarcane Farmers Association [BUTOS], have lauded President Yoweri Museveni for compelling sugar companies in the country to remove the 5 percent trash deduction previously applied to sugarcane supplied by farmers.
During a meeting with sugarcane farmers and millers at Kityerera State Lodge in Mayuge District on August 6, 2025, Museveni directed sugar millers and weighbridge operators to stop deducting a trash levy from farmers.
The President’s directive followed farmers’ concerns about the continued 5 percent levy, a cost management charge that was supposed to be scrapped under the newly amended Sugar Act.
These trash deductions had been a persistent source of discontent among sugarcane farmers across various regions. Farmers argued that although the trash was deducted from their payments, the same material was subsequently used by sugar factories to produce bagasse, electricity, fertiliser and other valuable by-products.
However, Museveni urged sugar manufacturers to reject sugarcane deliveries to factories if they are mixed with husks and tops.
At a BUTOS meeting held at Kolping Hotel in Hoima City last Thursday, leaders from various sugarcane farmers’ associations reported that the President’s directive had been fully adhered to.
Robert Atugonza, the Sugar Industry Stakeholders Council representative for the Bunyoro and Tooro regions, said: “President Museveni directed the removal of the 5 percent trash deduction by the millers, and this has been fully implemented by the sugar companies in Bunyoro and Tooro.
“I want to commend the President for this because farmers are happy and are now reaping the rewards of their sweat,” he added.
The Bunyoro and Tooro regions are home to several sugar companies, including Kinyara Sugar Limited, Kyenjojo Sugar Limited, Kiryandongo Sugar Limited, Hoima Sugar Limited and Bwendero Sugar Limited.
Atugonza pledged to continue presenting the concerns of Bunyoro and Tooro farmers to the council for redress. He added that they would push for the establishment of a pricing committee to help determine the price of sugarcane and sugar, thereby guiding millers and farmers on a minimum price.
He also urged sugarcane farmers to remain united in the face of a looming reduction in sugarcane prices, highlighting the challenge posed by manufacturers planning price cuts when the cost of producing one tonne of cane is already high.
“Government needs to subsidise the cost of producing sugarcane and also the cost of producing sugar. Farmers need to stand firm and work together to achieve their interests,” he emphasised.
Patrick Byamukama, the chairperson of BUTOS, called for the formation of active leadership structures among farmers supplying specific sugar companies to better understand and address their challenges.
He noted concerns about potential sugarcane price reductions but acknowledged a lack of clarity regarding the exact cause.
“We need to have uniform ways of negotiating prices in our regions. We do not want to see farmers being paid differently when they are producing cane under the same circumstances. We need to see uniformity and satisfied sugar farmers,” Byamukama said.
He explained that the meeting aimed to collectively find solutions to emerging challenges in the sugar business, particularly falling sugar and sugarcane prices, which directly affect farmers’ profitability.
He also highlighted the need to improve operational issues at sugar factories, which are directly linked to farmers’ profitability, citing improvements in harvesting and haulage.
“We also wanted to harmonise and standardise business conditions across all sugar mills in Bunyoro and Tooro,” he concluded.
On May 30, 2025, Museveni signed the Sugarcane Amendment Bill 2023 into law at State House, Entebbe.
He signed it in the presence of sugarcane farmers’ leaders from the Bunyoro, Buganda, Busoga and Acholi sub-regions, as well as representatives of all millers.
The Parliament of Uganda passed the Bill in April 2025. According to farmers in Bunyoro, the new law introduces changes that many farmers had long advocated for, as they often felt excluded from decision-making and unfairly compensated.
Benefits of the new law
Farmer participation: Farmers will now take part in national-level decision-making through representation on the national council, as the law provides for four farmers on the committee.
After two years, the cane price will increase by 10 percent. The law also provides a clear method for determining the cane price and establishes a countrywide minimum price.
The law halts the previous one-sided decisions made solely by millers and the government, ensuring more balanced governance of the industry.
It also provides for the establishment of a sugarcane research institute, expected to improve cane varieties and agronomic practices, directly benefiting farmers.
The law does not provide for zoning and also expunges trash deduction on farmer sales [5 percent] as directed by the President and the Speaker.
With clear pricing mechanisms and increased farmer involvement, the law is expected to reduce disputes in the sugar sector, potentially leading to a more stable industry.
Phinehas Kyotasobora, the Vice Chairperson of Masindi Sugar Cane Farmers Association Limited [MSGAL], expressed satisfaction with the signing of the Bill into law, saying he believed it would resolve existing confusion in the sugar industry.
However, he called for a review of the Sugar Act, particularly the clauses concerning pricing.
“Other sections are operational apart from the cane price formula, which they say should become effective two years after the law has been gazetted. It is the first experience in Uganda to have a law implemented in bits and pieces,” Kyotasobora argued, adding that it should be fully implemented following review and approval by Parliament and the President.
He said that, during the review, it should be made clear that the value of by-products such as power, bagasse, fertilisers and spirits generated from sugarcane should also be considered when determining the sugarcane price.
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