Government intervenes in low sugarcane prices in Busoga, sugar millers agree on a minimum price of UGX 125,000 per tonne.

Kampala– Government through the Ministry of Trade, Industry and Cooperatives together with the sugar millers in Busoga region have set UGX 125,000 as the minimum price of a ton of sugarcane in the region. This follows an outcry from some sugarcane out-growers in Busoga who have taking home as low as ugx90,000 for a ton of sugarcane.

Hon. Francis Mwebesa, the Minister of Trade, Industry and Cooperatives during the meeting.

The minimum price of sugarcane in Busoga was agreed on during a meeting between officials of the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council and the sugar millers in Busoga region that took place on Friday 19th December 2025 at the ministry offices.

The meeting was attended by six sugar millers from Busoga, that is Sugar Corporation of Uganda Limited (SCOUL), Kakira sugar, GM sugar, Kamuli sugar, Mayuge sugar and Bugiri sugar, 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 ministry officials.

While chairing the meeting, the Minister of Trade, Industry and Cooperatives Hon. Francis Mwebesa said his ministry received complaints from sugarcane out-growers regarding the low sugarcane prices.

“We have been receiving concerns of 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’, said Mwebesa

Most of the concerns raised by the sugarcane farmers were raised against GM sugar, Kaliro sugar, Bugiri sugar and Kamuli sugar millers whom the farmers claimed were offering prices that were way below what is indicated in the formula for sugar pricing under the Sugar Amendment Act 2025. There is also a concern by out-growers on the 5 percent deduction for trash that some sugar millers still charge farmers yet the sugar council pronounced itself on the matter removing this deduction.

Mwebesa said government recognizes that if farmers earn low returns relative t input and transport costs, long-term production, investment, and sector resilience are at risk.

Mwebesa tasked the sugar millers to explain why they decided to reduce sugarcane prices during a campaigning period for the upcoming general elections, a move that risks denting the support of the National Resistance Movement Party. He urged the millers to desist from practices that will affect farmers’ incomes/earnings.

In response, Henry Kata from GM sugar informed the meeting that the fluctuating sugarcane prices are caused by a number of factors that the Ministry of Trade, Industry and Cooperatives and the Sugar Industry Stakeholders Council need to look into and come up with solutions.

‘Although the Sugar Amendment Act of 2025 provides a formula for sugarcane pricing, we end up offering different prices to the farmers because of the other factors at play, for instance, our costs of production differ, and therefore, we cannot offer the same prices”, explained Kata

Minister Gume requested the millers with low prices to revise their prices upwards for a period of two months, pending a review of the sugarcane pricing across the country by the Sugar Industry Stakeholders Council. Gume said the move will ensure social and political stability in the Busoga region especially during the current political period.

Daudi Migereko told the millers that the NRM government has worked with them over the years to ensure stability of the sugar sector. ‘We have always considered you as our partners in development, and that is why we always consult you before making any decisions regarding the sugar sector. That is why we request a revision of your prices as we wait for the sugar council to look into the matter’, said Migereko.

The sugar millers led by Akash of GM sugar, Yogesh Agri and Ismail Nasifu of Kamuli sugar unanimously agreed to set a minimum price of a ton of sugarcane at ugx125,000 across the entire Busoga region for a period of two months, pending a review of this matter by the sugar council.

The Chairperson of the Sugar Industry Stakeholders Council Rajbir Singh Rai of Kinyara sugar urged the sugar millers to comply with the new law which provides a clear formula for sugarcane pricing so th

at there is harmony in the sugar sector.