Govt outs sugar industry policy
Jun 03, 2010
A sugar policy, under which the industry will be regulated, has been finalised. The policy is expected to come into force next month after it has been approved by Parliament.
By David Ssempijja
A sugar policy, under which the industry will be regulated, has been finalised. The policy is expected to come into force next month after it has been approved by Parliament.
The draft document was compiled by the trade and industry ministry and private players in the sugar industry.
Fr. Simon Lokodo, the industry state minister, said the policy was part of the national industrial policy that was approved by the Government in 2008.
“One of the proposed policy actions was to develop action agendas for key industrial sub-sectors,†he said.
He was addressing a half-day national sugar policy stakeholders’ workshop at Hotel Africana in Kampala on Tuesday.
The workshop aimed at collecting stakeholders’ views before the final document is tabled before Parliament.
The policy, it is hoped, will bring harmony in the sugar industry, promote sustainable industrial growth, thus making the sector more competitive.
When approved, the policy will empower farmers to negotiate fair prices and protect the industry currently flooded with sugar smuggled from foreign countries, which is sold at cheaper prices.
In the East African region, it is only Uganda that does not have a sugar policy or regulatory body despite the numerous problem the sector faces.
Sector stakeholders want the Government to institute a national sugar board to help address frictions in the industry.
The document also emphasises that the Uganda Investment Authority would issue licences to new sugar factories based on cane zoning areas. However, the existing millers proposed that it should be extended beyond the current radius of 25km to 35km as the minimum.
Jaggery mills shall also be licensed and located out side the cane zoning areas.
Currently, out-growers complain of low cane prices, un-favourable payment terms by established factories, high percentage (5%) deductions on cane delivered weight as unclean products, delayed payments, uncoordinated closure of factories for annual maintenance among others.
The policy will compel the millers and farmers to ensure that food security is taken care of in the plantation expansion processes where part of the land is supposed to be utilised for food crops.
State minister for trade Eng. Nelson Gagawala said the policy formulation was indicative of the considerable attention government attaches to the sugar sub-sector’s pivotal role in the country’s economic progress.
“Apart from providing sugar, a vital food, the Uganda sugar industry provides direct employment to over 15,000 and 50,000 direct and indirect employments respectively,
It also contributes to development of rural road infrastructure as well as providing social services like hospitals, schools, electricity and other community development services upcountry,†he said.
Overall, in year 2008, the sector contributed over sh70b onto Gross Domestic Product, as well as savings of $176m in foreign exchange earnings, thus contributing to the stability of the Uganda shillings on the foreign exchange market.
A sugar policy, under which the industry will be regulated, has been finalised. The policy is expected to come into force next month after it has been approved by Parliament.
The draft document was compiled by the trade and industry ministry and private players in the sugar industry.
Fr. Simon Lokodo, the industry state minister, said the policy was part of the national industrial policy that was approved by the Government in 2008.
“One of the proposed policy actions was to develop action agendas for key industrial sub-sectors,†he said.
He was addressing a half-day national sugar policy stakeholders’ workshop at Hotel Africana in Kampala on Tuesday.
The workshop aimed at collecting stakeholders’ views before the final document is tabled before Parliament.
The policy, it is hoped, will bring harmony in the sugar industry, promote sustainable industrial growth, thus making the sector more competitive.
When approved, the policy will empower farmers to negotiate fair prices and protect the industry currently flooded with sugar smuggled from foreign countries, which is sold at cheaper prices.
In the East African region, it is only Uganda that does not have a sugar policy or regulatory body despite the numerous problem the sector faces.
Sector stakeholders want the Government to institute a national sugar board to help address frictions in the industry.
The document also emphasises that the Uganda Investment Authority would issue licences to new sugar factories based on cane zoning areas. However, the existing millers proposed that it should be extended beyond the current radius of 25km to 35km as the minimum.
Jaggery mills shall also be licensed and located out side the cane zoning areas.
Currently, out-growers complain of low cane prices, un-favourable payment terms by established factories, high percentage (5%) deductions on cane delivered weight as unclean products, delayed payments, uncoordinated closure of factories for annual maintenance among others.
The policy will compel the millers and farmers to ensure that food security is taken care of in the plantation expansion processes where part of the land is supposed to be utilised for food crops.
State minister for trade Eng. Nelson Gagawala said the policy formulation was indicative of the considerable attention government attaches to the sugar sub-sector’s pivotal role in the country’s economic progress.
“Apart from providing sugar, a vital food, the Uganda sugar industry provides direct employment to over 15,000 and 50,000 direct and indirect employments respectively,
It also contributes to development of rural road infrastructure as well as providing social services like hospitals, schools, electricity and other community development services upcountry,†he said.
Overall, in year 2008, the sector contributed over sh70b onto Gross Domestic Product, as well as savings of $176m in foreign exchange earnings, thus contributing to the stability of the Uganda shillings on the foreign exchange market.