Kampala: The Ugandan government has reached a binding agreement to fix the minimum price of sugarcane at Shs125,000 per tonne in the Busoga region, following sharp falls in farmer payments that had raised concerns about the future of the sugar industry, reports The Independent.
The decision was finalised at a meeting held in Kampala on December 19, after farmers reported receiving as little as Shs90,000 per tonne, a level officials said was unsustainable for growers and risky for the wider industry.
The meeting was chaired by Trade Minister Francis Mwebesa and brought together officials from the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and representatives of six major sugar millers—SCOUL, Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar and Bugiri Sugar.
Government officials said the falling prices were not only hurting farmers but also threatening the steady supply of sugarcane needed to keep mills running. The minister told participants that unstable pricing weakens the entire sector and makes long-term planning difficult for both growers and processors.
The agreement enforces the pricing provisions under the Sugar Amendment Act 2025, which had not been followed by some millers. While mill representatives pointed to differences in production costs as a reason for varying prices, the government insisted on a uniform minimum rate. All millers present agreed to comply with the Shs125,000 per tonne price for an initial period of two months, during which a broader national review of sugarcane pricing will be carried out.
Officials also acknowledged that continued low prices could create social and political tension in sugar-growing areas. They said ensuring fair returns for farmers was important for maintaining stability, especially during an election period.
For millers and investors, the government said the move would help secure a reliable supply of raw materials and bring greater certainty to the sector. Industry representatives indicated their acceptance of the decision, noting that a clear and enforced pricing structure would support long-term cooperation with farmers and the government.
