UGANDA – Sugarcane farmers in Uganda, under the Busoga Sugarcane Growers Union (BSU), are urging the government to address challenges in the sugar industry to ensure profitability and long-term economic transformation.
The farmers have emphasized the importance of sugarcane as the backbone of Busoga’s economy and called for government intervention to support value addition within the sector.
Peterson Mubiru, chairperson of the sugarcane farmers in Kamuli district, highlighted the need for government financing in the form of low-cost loans and skills training to help farmers process their sugarcane into finished products.
Mubiru explained that value-added products such as molasses, bagasse, and ethanol could fetch significantly higher prices than raw cane, with molasses selling for Ugsh550,000 (US$149.11) per tonne, bagasse at Ugsh220,000 (US$59.64), and ethanol at Ugsh9,000 (US$2.44) per litre.
He noted that value addition would not only increase profitability but also ensure the long-term sustainability of the sugar industry in Busoga.
The farmers expressed concerns about government agencies failing to relay support effectively and accused certain individuals of obstructing efforts to boost the sector.
They called on the government to ensure that any support reaches farmers directly to avoid exploitation.
In July, cane outgrowers protested against falling sugarcane prices, citing a glut caused by shrinking regional markets. This led to an increase in domestic stockpiles.
According to the Bank of Uganda, sugar export volumes dropped from 27,000 tonnes in June to 16,000 tonnes in July due to cane scarcity. Millers warned that unless regional markets reopen to Uganda’s sugar exports, prices could fall further.
Despite Uganda’s 16 sugar factories having an installed capacity of 1.2 million tonnes per annum, they are currently operating at half capacity due to limited export market access, while domestic consumption stands at 0.4 million tonnes.
The farmers are also resisting millers’ attempts to mechanize harvesting and loading, citing potential job losses and threatening to resort to arson if mechanization is implemented.
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