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President Yoweri Kaguta Museveni has officially signed the Sugarcane (Amendment) Bill, 2023 into law, urging both sugar millers and farmers to work together to safeguard the future of Uganda’s sugar industry.
Speaking at the signing ceremony held at State House Entebbe, the President emphasized the need for harmony within the sector, warning that failure to cooperate could spell disaster for both producers and processors.
“If there’s no cooperation, the sugar factories will collapse, and farmers will have nowhere to sell their cane,” Museveni said. “Likewise, processors also stand to lose.”
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The Bill, recently passed by Parliament following extended consultations with stakeholders from sugarcane-growing regions Buganda, Busoga, Bunyoro, and Acholi addresses key concerns around industry regulation, pricing, and representation.
Trade Minister Hon. Francis Mwebesa, who presented the Bill to the President, explained that it provides for the self-regulation of the Sugar Industry Stakeholders Council, a body envisioned in the Sugar Act of 2020. The council will be composed of four farmer representatives, three from the millers, and three government representatives from the ministries of Trade, Agriculture, and Finance.
The chairperson of the council will alternate between farmers and millers every two years to ensure fair representation and prevent dominance by any one group.
“The rotation ensures inclusivity and balances the interests of all stakeholders,” said Minister Mwebesa.
Additionally, a Sugar Development Fund will be set up, funded jointly by millers and outgrowers in a 70-30 ratio, to support council operations.
The President was also briefed on the revenue-sharing mechanism, which mandates millers to share proceeds not only from sugar but also from its by-products, such as ethanol and electricity, with farmers.
“I am now content. This formula acknowledges the real value of sugarcane. It is not just about sugar,” President Museveni noted, before officially signing the Bill into law.
However, he cautioned millers against convincing small landholders particularly those with under four acres to grow sugarcane. He reiterated his long-standing advice to such farmers to adopt the 4-acre model that prioritizes coffee, fruits, food crops, dairy farming, poultry, pigs, and fish farming for sustainable household incomes.
Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa, praised the President for his leadership and for encouraging consensus during the Bill’s development process.
“We had challenges midway, but when I contacted you, you insisted on consensus. That’s what guided us to reach this agreement,” said Tayebwa.
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The ceremony was attended by several high-ranking officials, including Third Deputy Prime Minister Hon. Rukia Nakadama, Minister for the Presidency Hon. Milly Babalanda, State Minister for Trade Hon. David Bahati, MPs from sugarcane-growing constituencies, and leaders from sugarcane growers’ associations across the country.
With the law now in place, industry players are hopeful that the reforms will bring stability, fairness, and growth to one of Uganda’s key agricultural sectors.
