Government pledges to support small sugar millers

Feb 09, 2016

Cabinet has already passed the new Sugar Bill 2015, which will provide for mechanisms to support all sugar millers in the country

Trade minister Amelia Kyambadde has pledged government support for the Millers' Association of Sugarcane.

 

The two associations have been fighting over recognition as key players in expanding the sugar sector, with the small millers complaining of being undermined by the Sugar Manufacturers Association.

 

"As Government, we are committed to support and work with the association of the small sugar millers as we have done with other associations," Kyambadde said.

 

Kyambadde said Cabinet has already passed the new Sugar Bill 2015, which will provide for mechanisms to support all sugar millers in the country.

 

She said once enacted, the law will establish a National Sugar Board that will monitor, oversee and coordinate all activities relating to, and ensure a fair, efficient and effective administration and operation of the sugar industry.

 

The minister added that a sugar research institute will be established under a Public Private Partnership arrangement and encouraged the small millers association to contribute to the establishment of the institute.

 

This was during a meeting with Millers' Association at the trade ministry office in Kampala last week, to outline their objectives and strategies to expand the sugar sector.

 

The sugar industry has for long been awash with contention and unfair competition between the big manufacturers and the small millers.

 

"We expected to get guidance from the big manufacturers, but unfortunately we realized that they do not want us to do business in sugar. They even barred us from joining their association, that is why we decided to form our own,' said the chairperson of the millers' association, Kamalesh Maheshwari.

 

He said the disagreement with the big sugar manufacturers started when they were accused of encroaching on the sugar market that is dominated by the big manufacturers, and were instructed to close shop which they refused

 

"The market is still big and there is still a big gap to fill in Kenya. If we work together to fill this gap, we all benefit. Furthermore, the region has just opened up to COMESA, which exposes us to unfair competition. We should instead join hands, produce more, lobby more for the market to benefit," he said.

 

Uganda's sugar output is currently estimated at 374,660 tons a year, but is expected to rise to 425,000 tones at full production by the eleven new millers.

 

This, according to Kyambadde, would offer the industry a surplus of 75,000 tons for export, as Uganda's consumption is estimated at 350,000 tons a year.

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