Uganda Sugar Council to commence work in September

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A newly established Sugar Council is set to begin its work within the next two weeks, marking a significant shift in Uganda's sugar industry by giving key stakeholders—especially farmers—a direct role in its governance.

According to State Minister for Industry David Bahati, the development follows Cabinet's recent approval of the council's inauguration. Bahati made the announcement during the commissioning of Kaliro Sugar Ltd’s new plant in Kaliro District, an event presided over by Trade Minister Francis Mwebesa representing President Yoweri Museveni.

Speaking at the event, Bahati described the council as a historic shift in governance, empowering farmers and processors to take charge of the industry’s direction, policies, and pricing mechanisms.

“We made the law — and you participated in it. Now the Sugar Council is in place,” Bahati told farmers and industry players. “All the problems we’ve talked about — from pricing to regulation — are now for you to solve. You are no longer just farmers; you are citizens of the sugar industry.”

(Courtesy)

The council, formally approved by Cabinet last week, is expected to be fully inaugurated and operational within two weeks. It will include representatives from the private sector, farmer associations, and government, and will be tasked with overseeing regulation, resolving disputes, ensuring fair pricing, and improving coordination across the industry.

Its establishment stems from the Sugarcane (Amendment) Act, 2023, which Parliament passed in April and President Museveni later signed into law. The Act replaces the defunct Sugar Board with a more inclusive and responsive council, placing the responsibility of industry regulation directly into the hands of stakeholders.

The council will be composed of a chairperson, four representatives of sugarcane out-growers, four representatives of sugar millers, and the permanent secretaries from the ministries of Agriculture, Finance, and Trade.

Under the new law, the council is mandated to review licensing applications from millers and submit recommendations to the minister. It also provides that any aggrieved party may seek redress in a court of competent jurisdiction within 30 days. Importantly, the Act places the financial responsibility for the council's operations on the millers.

At the event, low prices paid to farmers remained a central concern. Kaliro District LCV Chairperson Elijah Kagoda welcomed the investment but urged stakeholders to address pricing issues that have long disadvantaged farmers.

"We have learned that sugar means riches, but the money paid for sugarcane is still very low,” Kagoda said. “I pray that, since all of you are here, you work on improving the prices paid to farmers.”

His comments reflect longstanding frustrations among farmers in the Busoga sub-region, where millers have cut prices from over sh200,000 to sh120,000 per ton. Through their umbrella body, the Busoga Sugarcane Outgrowers’ Association, farmers have argued that production costs — including for fertilisers, cultivation, and transport — exceed what they earn, making farming unprofitable.

Meanwhile, the launch of Kaliro Sugar Ltd’s new plant marked a major milestone in Uganda’s agro-industrialisation journey. Spearheaded by Ashish Mompara, the factory boasts an initial capacity to crush 2,500 tons of sugarcane per day, producing 78,000 tons of raw sugar annually.

According to Mompara, expansion plans are underway to increase capacity to 8,000 tons per day, with an annual output target of 230,000 tons of sugar. The factory has already created 1,500 direct jobs, with plans to generate up to 10,000 jobs in the near future.

Mompara also emphasised the factory’s commitment to sustainability:

“Kaliro Sugar Factory will implement eco-friendly waste management practices, promote renewable energy solutions, and support reforestation programs to safeguard the environment while powering Uganda’s agro-industrial future.”

President Museveni, represented by Minister Francis Mwebesa, praised the investment as a model of Uganda’s economic transformation — one that adds value to agricultural produce, creates jobs, and reduces dependency on imports.

Minister of State for Investment and Privatisation Evelyn Anite also commended the project, noting its alignment with Uganda’s long-term development goals.

“Uganda’s future lies in agro-industrialisation. Investments like Kaliro Sugar Factory directly support the National Development Plan III and Vision 2040 by creating jobs, empowering farmers, and stimulating regional economies,” Anite said.