MPs asked to turn sugar policy into law

Nov 16, 2013

THE Uganda Sugar Manufacturer’s Association has asked lawmakers to enact the National Sugar Policy into an Act so that the sugar industry is effectively regulated

By Umaru Kashaka

THE Uganda Sugar Manufacturer’s Association has asked lawmakers to enact the National Sugar Policy into an Act so that the sugar industry is effectively regulated and operates in a sustainable environment.

Presenting a petition to the trade and tourism committee on Wednesday, the association’s chairman, Jim Kabeho, warned that without the law in place, investors’ confidence would soon wane owing to growing uncertainty in the investment climate, generated by clamour for a share of the sugar business with no regard for existing investments.

“A regulated environment will enable the industry to attract and retain only viable long-term investments that will contribute to Uganda’s economic development,” Kabeho explained to the committee chaired by Grace Namara, the Lyantonde Woman MP.

He noted that the association which includes Kinyara Sugar, Kakira Sugar, Sugar Corporation of Uganda and Mehta has been operating under the 1938 Sugar Control Act which does not reflect the current developments in the sugar industry.

“As a result of the inadequacies in the regulatory framework of sugar production and export, the current expansion programmes of the old mills have been affected and will in the long run distort the whole sugar industry which has taken the country two and a half decades to re-develop,” he said.

Citing Kenya where there is confusion in the industry due to failure by the country’s sugar board to enforce the sugar policy, the association noted that whereas the national sugar policy was formulated in 2010 to address the gaps that exist in the Sugar Control Act, the policy still remains on paper.

“The policy, for example, specifies a radius of 25km between two factories within which each factory will use 30% of its area for sugar cane growing and the remaining land to be used for food security and other activities,” Sharma Suresh, Mehta’s regional director, said.

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