SCOUL in $45m expansion drive
May 20, 2007
THE Sugar Corporation of Uganda (SCOUL) is to invest $45m in an expansion drive. Suresh Sharma, the regional director for African operations, said over the weekend that the investment would double their annual output of 55,000 tonnes to 110,000 tonnes.
By Chris Omony
THE Sugar Corporation of Uganda (SCOUL) is to invest $45m in an expansion drive. Suresh Sharma, the regional director for African operations, said over the weekend that the investment would double their annual output of 55,000 tonnes to 110,000 tonnes.
“Uganda is currently experiencing a shortage of 40,000 tonnes of sugar per annum.
“This is estimated to increase to about 170,000 tonnes per annum in the next five years.
“This is because the population is increasing by 3.3% per annum.
“The per capita consumption of sugar is also increasing from the current level of nine kilogrammes to 14 kilogrammes,†Sharma explained.
“These alarming figures will require a precious foreign exchange of about $70-80m per annum for sugar imports which can be avoided by expanding the production capacity in the local industry,†he added.
Sharma, however, noted that they lacked adequate land to meet the planned expansion. He said this is despite the recent acquisition of 1,500 hectares of land from private sources.
“While SCOUL very much wished to enlarge the cane area under out-growers, it appears not possible due to very small holdings, highly scattered and difficult topography,†he lamented.
He explained that Mailo land owners in Mukono are not interested in farming while the small kibanja holders were doing subsistence farming.
SCOUL is a joint venture between the Mehta Group and the Government.
The Mehta Group has been a major long-term investor in the country for over 100 years and over 80 years in the sugar industry.
THE Sugar Corporation of Uganda (SCOUL) is to invest $45m in an expansion drive. Suresh Sharma, the regional director for African operations, said over the weekend that the investment would double their annual output of 55,000 tonnes to 110,000 tonnes.
“Uganda is currently experiencing a shortage of 40,000 tonnes of sugar per annum.
“This is estimated to increase to about 170,000 tonnes per annum in the next five years.
“This is because the population is increasing by 3.3% per annum.
“The per capita consumption of sugar is also increasing from the current level of nine kilogrammes to 14 kilogrammes,†Sharma explained.
“These alarming figures will require a precious foreign exchange of about $70-80m per annum for sugar imports which can be avoided by expanding the production capacity in the local industry,†he added.
Sharma, however, noted that they lacked adequate land to meet the planned expansion. He said this is despite the recent acquisition of 1,500 hectares of land from private sources.
“While SCOUL very much wished to enlarge the cane area under out-growers, it appears not possible due to very small holdings, highly scattered and difficult topography,†he lamented.
He explained that Mailo land owners in Mukono are not interested in farming while the small kibanja holders were doing subsistence farming.
SCOUL is a joint venture between the Mehta Group and the Government.
The Mehta Group has been a major long-term investor in the country for over 100 years and over 80 years in the sugar industry.