Government, Millers Agree on UGX 125,000 Minimum Sugarcane Price in Busoga

The Government, through the Ministry of Trade, Industry and Cooperatives, has agreed with sugar millers in the Busoga sub-region to set UGX 125,000 as the minimum price per tonne of sugarcane, following sustained complaints from out-growers over low farm-gate prices.

The decision was reached during a high-level meeting held on Friday, 19th December 2025, at the Ministry of Trade offices in Kampala, bringing together officials from the ministry, the Sugar Industry Stakeholders Council (SISC), and sugar millers operating in the Busoga region.

The meeting was attended by representatives from six sugar companies in Busoga—Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar, and Bugiri Sugar. Also present were the State Minister for Cooperatives and Member of Parliament for Bulamogi North West County, Hon. Frederick Ngobi Gume, the Chairperson of the National Biofuels Committee and former minister, Daudi Migereko, and senior ministry officials.

Government Responds to Farmers’ Complaints

While chairing the meeting, the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa, said the ministry had received numerous complaints from sugarcane out-growers, some of whom reported earning as low as UGX 90,000 per tonne, a figure far below production and transport costs.

“We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and directly impact farmer livelihoods, mill supply stability, and the social and political stability in sugarcane-growing areas,” Mwebesa said.

Farmers specifically raised concerns against GM Sugar, Kaliro Sugar, Bugiri Sugar, and Kamuli Sugar, accusing them of offering prices inconsistent with the pricing formula provided under the Sugar Amendment Act, 2025. Out-growers also protested the continued five percent deduction for trash, despite the Sugar Industry Stakeholders Council having abolished the deduction.

The minister warned that persistently low prices threaten long-term production, farmer investment, and the overall resilience of the sugar sector.

Political Timing Raises Concern

Mwebesa further questioned the timing of the price reductions, noting that they coincided with the campaign period ahead of the 2026 General Elections.

“Reducing sugarcane prices during a politically sensitive period risks undermining farmer incomes and could negatively affect the support base of the National Resistance Movement,” he cautioned, urging millers to desist from practices that harm farmers’ earnings.

He emphasized that under the Sugar Amendment Act, 2025, sugarcane pricing is the mandate of the Sugar Industry Stakeholders Council, not individual millers.

Millers Cite Cost Variations

Responding on behalf of GM Sugar, Henry Kata acknowledged price variations but attributed them to differing operational costs among millers.

“Although the Sugar Amendment Act of 2025 provides a formula for sugarcane pricing, our production costs differ, which makes it difficult to offer uniform prices across all mills,” Kata explained.

Temporary Price Review Agreed

State Minister Hon. Frederick Ngobi Gume appealed to millers offering lower prices to revise them upwards for at least two months, pending a comprehensive national review of sugarcane pricing by the Sugar Industry Stakeholders Council.

He noted that the interim measure would help maintain social and political stability in Busoga, particularly during the ongoing political season.

Former minister Daudi Migereko reminded millers of the long-standing partnership between the sugar industry and the NRM government.

“We have always regarded you as partners in development, which is why we consult you before making key decisions in the sugar sector. We therefore request a price revision as the council reviews this matter,” Migereko said.

UGX 125,000 Minimum Price Agreed

Following the deliberations, sugar millers—led by Akash of GM Sugar, Yogesh Agri, and Ismail Nasifu of Kamuli Sugar—unanimously agreed to set a minimum price of UGX 125,000 per tonne of sugarcane across the entire Busoga region.

The agreed price will apply for two months, after which the Sugar Industry Stakeholders Council is expected to issue further guidance following its review.

The Chairperson of the Sugar Industry Stakeholders Council, Rajbir Singh Rai of Kinyara Sugar, urged millers to comply fully with the new law.

“The Sugar Amendment Act provides a clear and harmonised formula for sugarcane pricing. Compliance will ensure harmony, stability, and fairness in the sugar sector,” Rai said.

The government reiterated its commitment to protecting farmers’ livelihoods while ensuring sustainability and order within Uganda’s sugar industry.