Sugarcane farmers in Uganda’s Busoga sub-region have accused sugar millers of failing to follow the government’s directive on the minimum buying price of sugarcane, saying the situation is pushing growers into losses as production costs continue to rise, reports Monitor.
The government recently introduced a temporary minimum price of Shs125,000 per tonne to safeguard farmers. However, growers say the rate is still inadequate and that some millers are paying as little as Shs105,000 per tonne. Copies of receipts seen by The Monitor show that some factories are indeed buying cane at the lower prices.
Mr Hassan Ngobi, a sugarcane farmer from Mayuge district, said the price cuts were unjust and harmful to farmers. He said growers spend heavily on land preparation, labour and farm inputs, but at harvest time, millers set prices to their advantage despite the government intervention.
Another farmer, Mr Musa Kabugo, said the lack of a farmer-owned sugar mill in the region has made growers vulnerable to exploitation. He noted that even the Shs 125,000 minimum price does not cover costs, explaining that with an 18-month growing cycle, farmers need at least Shs180,000 per tonne to avoid losses. He added that poverty forces many farmers to sell their cane early at prices sometimes below Shs 120,000.
The chairperson of the Greater Busoga Sugarcane Farmers’ Union (GBSGU), Mr Godfrey Biriwali, said farmers were increasingly discouraged because the income from sugarcane no longer matches the effort and investment involved. He pointed out that farmers earn only from selling cane, while millers benefit from multiple products such as sugar, molasses, ethanol, bagasse, sweets and fertilisers.
Mr David Christopher Mwombe, chairperson of the Busoga Sugarcane Out-growers Association, said Kakira Sugar Factory was adhering to the Shs 125,000 temporary minimum price, but accused other factories of underpaying farmers. He added that in neighbouring Kenya, some millers pay farmers up to Shs 150,000 per tonne.
The chairperson of the Uganda National Association of Sugarcane Growers (UNASGO), Mr Julius Katerevu, said farmers are urging the Uganda Sugar Industry Stakeholders’ Council to take a more active role. He said growers want the council to function effectively to prevent a return to unfair practices in pricing.
The Uganda Sugar Industry Stakeholders’ Council was formed under the Sugarcane (Amendment) Act, 2025, to regulate the sugar sector. Appointed by Cabinet in October 2025, the council is mandated to promote fair pricing, supervise mill licensing and expansion, resolve disputes and ensure inclusive management of the industry. It has 10 members drawn from farmers, millers and the ministries of Trade, Agriculture and Finance.
The First Deputy Prime Minister and Minister for East African Affairs, Ms Rebecca Alitwala Kadaga, said the government is aware of the farmers’ complaints and will engage millers to ensure they comply with the agreed minimum price.
Sugarcane prices had reached a high of Shs240,000 per tonne in December 2023 before falling sharply. In 2025, some millers reduced payments to between Shs80,000 and Shs90,000 per tonne, prompting government intervention. A meeting chaired by President Museveni on December 19, 2025, later set the temporary minimum price at Shs 125,000 per tonne.
