Officials from Uganda's trade ministry and sugar companies in the Busoga region have set a minimum price for sugarcane. The new rate is 125,000 shillings per ton, established during a meeting with six major millers. Those companies include SCOUL, Kakira, GM Sugar, Kamuli Sugar, Mayuge Sugar, and Bugiri Sugar. The move addresses farmer complaints about prices sometimes dropping as low as 90,000 shillings.
Trade Minister Francis Mwebesa stated the government received valid concerns about arbitrarily low prices hurting farmer livelihoods and regional stability. He specifically criticized Mills for cutting prices during an election period, warning it could damage support for the ruling NRM party. The minister emphasized that pricing should follow the formula in the new Sugar Amendment Act.
Industry representatives, like Henry Kata from GM Sugar, argued that varying production costs prevent uniform pricing. Despite this, the millers agreed to the temporary minimum price for two months. Former minister Daudi Migereko framed the request as a partnership with a government that has historically supported the sector. The council chair, Rajbir Singh Rai, urged all mills to comply with the legal pricing formula for long-term harmony.
Trade Minister Francis Mwebesa stated the government received valid concerns about arbitrarily low prices hurting farmer livelihoods and regional stability. He specifically criticized Mills for cutting prices during an election period, warning it could damage support for the ruling NRM party. The minister emphasized that pricing should follow the formula in the new Sugar Amendment Act.
Industry representatives, like Henry Kata from GM Sugar, argued that varying production costs prevent uniform pricing. Despite this, the millers agreed to the temporary minimum price for two months. Former minister Daudi Migereko framed the request as a partnership with a government that has historically supported the sector. The council chair, Rajbir Singh Rai, urged all mills to comply with the legal pricing formula for long-term harmony.
