Unstable sugar prices: GM gives hope to the poor
Jan 24, 2007
When sugar prices shot up three months ago, there was a public outcry. The Government announced its commitment to end the crisis soon, but politicians dismissed it.
By Moses Nampala
When sugar prices shot up three months ago, there was a public outcry. The Government announced its commitment to end the crisis soon, but politicians dismissed it.
However, due to the high demand that is straining the traditional sugar factories, GM Sugar Works will start operating in three weeks’ time.
The managing director, Mukesh Makwana, says 90% of the machinery has already been installed.
“What has delayed us are the transport haulers that are ferrying machines from Mombasa Port to the site,†Mukesh says. “Our target is to see that production commences in the second week of February 2007,†he adds.
GM will produce 250 tonnes of sugar per day. It is located in Njeru town council, 100 metres off the Jinja-Kampala highway.
Three shiny rooftops of the big structures that house the factory attract your attention as you alight from a taxi.
The administration block, where top management coordinates their work, is located outside the gate.
The offices lack the aura of ostentation. They are furnished with tables made out of cheap timber and plastic chairs.
The traditional factories: Kakira Sugar Works, Sugar Corporation Uganda Limited and Kinyara Sugar Works may still be attached to the colonial model of owning big sugarcane plantations, but GM will depend on outgrowers.
Mukesh says GM helps farmers to flourish by providing them with ideal extension services to boost their yields per hectare.
He argues: “Without boosting farmers, poverty in Uganda cannot be fought because like in India, the agricultural sector is the biggest employer, therefore we buy their sugarcane to give them employment opportunities.â€
The production manager D.M. Patel adds: “India has 500 sugar factories. On average, there is a factory every 20 kilometres away.†Patel, also a sugarcane grower says production of these factories heavily relies on farmers for sugarcane.
“Back home, the whether is unfavourable due to minimal rainfall realised every season, but even then, farmers are a prosperous community. In Uganda, farmers can prosper because the country has good soils and favourable weather,†he asserts.
He says GM will introduce the latest brand of fertilisers, the Micro Nutrient Culture Bacteria Organic Manure. It is made out of sugarcane by-products.
The general manager, J.H. Bhatt, says: “On site, we need a labour force of about 180 people. A total of 150 will benefit indirectly. This includes outgrowers and truck drivers.â€
He says GM is about to start tasting the quality of sugarcane samples they buy from the outgrowers. A deafening noise welcomes you as you walk into the site, where huge angle bars and iron sheets stand.
The site is a buzz with activity. Workers wearing helmets do their tasks ranging from welding to fixing machinery. Heaps of sugarcane are piled in the factory yard.
Njeru LC3 secretary for production Bosco Lusaze says the factory was constructed on a five-hectare piece of land.
When sugar prices shot up from sh1,800 to sh4,000 a kilogramme in November last year, it was attributed to the high sugar demand in the Democratic Republic of Congo and Sudan.
If the Government continues with its revitalisation programme, the prospect for the future would be good, as this deal is bound to substitute monopoly with competitiveness, triggering off increased demand that would enable farmers to get good incomes.
When sugar prices shot up three months ago, there was a public outcry. The Government announced its commitment to end the crisis soon, but politicians dismissed it.
However, due to the high demand that is straining the traditional sugar factories, GM Sugar Works will start operating in three weeks’ time.
The managing director, Mukesh Makwana, says 90% of the machinery has already been installed.
“What has delayed us are the transport haulers that are ferrying machines from Mombasa Port to the site,†Mukesh says. “Our target is to see that production commences in the second week of February 2007,†he adds.
GM will produce 250 tonnes of sugar per day. It is located in Njeru town council, 100 metres off the Jinja-Kampala highway.
Three shiny rooftops of the big structures that house the factory attract your attention as you alight from a taxi.
The administration block, where top management coordinates their work, is located outside the gate.
The offices lack the aura of ostentation. They are furnished with tables made out of cheap timber and plastic chairs.
The traditional factories: Kakira Sugar Works, Sugar Corporation Uganda Limited and Kinyara Sugar Works may still be attached to the colonial model of owning big sugarcane plantations, but GM will depend on outgrowers.
Mukesh says GM helps farmers to flourish by providing them with ideal extension services to boost their yields per hectare.
He argues: “Without boosting farmers, poverty in Uganda cannot be fought because like in India, the agricultural sector is the biggest employer, therefore we buy their sugarcane to give them employment opportunities.â€
The production manager D.M. Patel adds: “India has 500 sugar factories. On average, there is a factory every 20 kilometres away.†Patel, also a sugarcane grower says production of these factories heavily relies on farmers for sugarcane.
“Back home, the whether is unfavourable due to minimal rainfall realised every season, but even then, farmers are a prosperous community. In Uganda, farmers can prosper because the country has good soils and favourable weather,†he asserts.
He says GM will introduce the latest brand of fertilisers, the Micro Nutrient Culture Bacteria Organic Manure. It is made out of sugarcane by-products.
The general manager, J.H. Bhatt, says: “On site, we need a labour force of about 180 people. A total of 150 will benefit indirectly. This includes outgrowers and truck drivers.â€
He says GM is about to start tasting the quality of sugarcane samples they buy from the outgrowers. A deafening noise welcomes you as you walk into the site, where huge angle bars and iron sheets stand.
The site is a buzz with activity. Workers wearing helmets do their tasks ranging from welding to fixing machinery. Heaps of sugarcane are piled in the factory yard.
Njeru LC3 secretary for production Bosco Lusaze says the factory was constructed on a five-hectare piece of land.
When sugar prices shot up from sh1,800 to sh4,000 a kilogramme in November last year, it was attributed to the high sugar demand in the Democratic Republic of Congo and Sudan.
If the Government continues with its revitalisation programme, the prospect for the future would be good, as this deal is bound to substitute monopoly with competitiveness, triggering off increased demand that would enable farmers to get good incomes.