Museveni steps in to resolve sugarcane price disputes

President Yoweri Museveni has stepped in to address the ongoing conflict between sugar millers and sugarcane outgrowers over the fluctuation in sugarcane prices. This intervention comes after prolonged disagreements about the pricing of raw cane.
Mr Museveni’s intervention is contained in a letter to Prime Minister, Ms Robinah Nabbanja, directing her to summon all stakeholders to see that all controversies, especially prices, between the sugar millers and sugarcane out growers, are addressed.
“ . . . I have seen a report by the Director General Internal Security Organisation dated July 18, 2024, regarding controversies between sugar factories and the sugarcane out growers. This is to direct you to call all the stakeholders and discuss these issues,’’ President Museveni’s letter dated August 26, 2024 reads in part.
President Museveni, in his letter, also wants to establish how much millers earn from one tonne of sugarcane when processed, the monetary value of the sugar, and as the byproducts, profits from finished products from each tonne of sugarcane and costs incurred, among others.
President Museveni’s letter also seeks to clarify the financial aspects of sugar production, including the revenue millers generate from processing one tonne of sugarcane, the monetary value of the sugar and its byproducts, and the profits and costs associated with each tonne of sugarcane.
Farmers, led by Isa Budhugo, the chairperson of the Uganda National Sugarcane Growers Association, have been advocating for a share of the byproducts from sugarcane, such as electricity, biogas, ethanol, and fertilisers, rather than just the sugar itself. Budhugo criticised the millers, stating, “Millers are just exploiting us yet they are earning a lot of profits out of our sweat. Sugar is not the only byproduct of sugarcane; we have ethanol, biogas, fertilizers, sweets, and so on,” he said on September 16.
This development follows a February appeal from the Busoga Kingdom, led by Prime Minister Dr Joseph Muvawala, for President Museveni to address the fluctuating sugarcane prices and to implement a pricing formula that would benefit farmers.
In 2017, sugar millers paid Shs175,000 per tonne of raw cane. This amount fell to Shs96,000 per tonne in 2021, rose to Shs240,000 per tonne throughout 2023, and then dropped to Shs90,000 per tonne in August 2024. Such fluctuations prompted sugarcane farmers to halt supplying their cane to milers on July 7, a decision which lasted for close to a month.
Additionally, the ban on sugar exports to Kenya has exacerbated the price drop for sugarcane, as decreased demand for sugar has led to an oversupply of raw materials.
Sugar remains a crucial cash crop in Busoga, drawing several sugar mills to the region, including Kakira Sugar Works (Jinja), Mayuge Sugar 
Factory (Mayuge), Kamuli Sugar Ltd (Kamuli), Kaliro Sugar Ltd (Kaliro), GM Sugar (Buikwe), Bugiri Sugar (Bugiri), CN Sugar (Namayingo), and Kidera Sugar (Buyende), which are either operational or under construction.