Overview:
The decision was reached on Friday during a meeting chaired by Trade Minister Francis Mwebesa, which brought together six major sugar millers, including Kakira Sugar, Scoul Uganda, and other key players in the region
KAMPALA – The Ministry of Trade, Industry and Cooperatives has set a minimum sugarcane price of Shs125,000 per ton in Busoga following complaints from farmers who were earning as low as Shs90,000 per ton, threatening livelihoods and regional stability.
The decision was reached on Friday during a meeting chaired by Trade Minister Francis Mwebesa, which brought together six major sugar millers, including Kakira Sugar, Scoul Uganda, and other key players in the region. Also present were State Minister for Cooperatives Fred Gume Ngobi and former Minister Daudi Migereko.
Mwebesa said arbitrary low pricing undermines farmer welfare and the stability of the supply chain. “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 social and political stability in sugarcane-growing areas,” he said.
The minister questioned the timing of the price reductions, warning that lowering prices during the election campaign could destabilize local support for the National Resistance Movement. He reminded millers that sugarcane prices are governed by the Sugar Industry Stakeholders Council, as stipulated in the Sugar Amendment Act 2025, and urged compliance with statutory guidelines.
Farmers had accused GM Sugar, Kaliro, Bugiri, and Kamuli millers of paying below the legal formula and illegally deducting five percent for trash. Millers justified price variations citing differing production costs.
The agreed Shs125,000 per ton rate is a temporary measure for two months, pending a comprehensive review by the Sugar Industry Stakeholders Council. Millers unanimously endorsed the minimum price to ensure socio-political stability in Busoga, especially during the ongoing election period.
State Minister Gume Ngobi called on millers to adjust low prices immediately. “This measure will help ensure social and political stability in Busoga during the current political period,” he said. Migereko also reminded millers of the government’s longstanding partnership with the sector and urged adherence to the new directive.
Representatives from GM Sugar, Yogesh Agri, and Kamuli Sugar confirmed their agreement to the two-month minimum price. Rajbir Singh Rai, Chairperson of the Sugar Industry Stakeholders Council, stressed the importance of complying with the statutory pricing formula to maintain harmony within the sector.
The temporary pricing directive signals the government’s commitment to balancing farmer welfare, industry stability, and socio-political peace during sensitive periods.