President Yoweri Kaguta Museveni has signed the Sugarcane (Amendment) Bill, 2023, into law, emphasizing the need for cooperation between sugarcane millers and farmers to ensure the sustainability of Uganda’s sugar industry.
“If you don’t want to kill this industry, you should all cooperate because if you don’t, the sugar factories will collapse. And once they collapse, new farmers will have nowhere to sell their sugar,” said President Museveni during the signing ceremony at State House.
The new law, passed by Parliament in April after wide consultations, addresses key concerns raised by stakeholders in sugarcane-growing regions including Buganda, Busoga, Bunyoro, and Acholi. These include the composition of the Sugar Industry Stakeholders Council, sugarcane pricing, and funding for council operations.
The Minister of Trade, Industry and Cooperatives, Mwebesa Francis, informed the President that the new law enhances self-regulation and strengthens farmer representation.
“The chairperson of the council will rotate between farmers and millers every two years. This avoids dominance and fosters inclusiveness,” Mwebesa said.
The council will consist of nine members, including four farmer representatives, three from millers, and one representative each from the ministries of Trade, Agriculture, and Finance.
A Sugar Development Fund will also be created. It will be financed jointly by millers and outgrowers in a 70:30 ratio and used to support council activities and sector development.
President Museveni welcomed the agreement for farmers to share in the full value of sugarcane, including by-products like ethanol and electricity.
“I am now satisfied. The processors indeed get more value from the cane than just sugar… this is a good formula. I can now sign the law,” he said.
He warned against encouraging smallholders with under four acres of land to grow sugarcane, urging them instead to adopt the four-acre model for household prosperity.
“One acre should go to coffee, one to fruits, another to pasture for dairy cows, and one for food crops. They can also do poultry, piggery, or fish farming where applicable,” the President advised.
Deputy Speaker of Parliament, Thomas Tayebwa, thanked the President for his leadership during negotiations.
“When I called you, you said not to proceed with the Bill until consensus was reached. So, we went back and started on mediations,” Tayebwa recalled.
The event was attended by Rukia Nakadama, Third Deputy Prime Minister, Babirye Milly Babalanda, Minister for Presidency, David Bahati, Minister of State for Trade (Industry), MPs from sugarcane-growing regions, and leaders of sugarcane growers’ associations from across the country.
