Kampala– The government, through the Ministry of Trade, Industry and Cooperatives, in partnership with sugar millers operating in the Busoga region, has agreed to set UGX 125,000 as the minimum price per tonne of sugarcane across the region.
The decision follows an outcry from sugarcane out-growers in Busoga, some of whom reported earning as little as UGX 90,000 per tonne, a figure they say does not reflect rising production and transport costs.
The new minimum price was agreed upon during a meeting held on Friday, December 19, 2025, at the Ministry of Trade, Industry and Cooperatives’ offices. The meeting brought together officials from the ministry, the Sugar Industry Stakeholders Council, and sugar millers operating in Busoga.
Six sugar millers attended the meeting: Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar and Bugiri Sugar. Also present were the State Minister for Cooperatives and Member of Parliament for Bulamogi North West County, Hon. Frederick Ngobi Gume, the Chairperson of the National Biofuels Committee and former minister, Daudi Migereko, and senior ministry officials.
While chairing the meeting, the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa, said his ministry had received numerous complaints from sugarcane out-growers over arbitrarily low prices.
“We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and which directly impact farmer livelihoods, mill supply stability, and the social and political stability in sugarcane-growing areas,” Mwebesa said.
Farmers particularly raised concerns against GM Sugar, Kaliro Sugar, Bugiri Sugar and Kamuli Sugar, accusing them of offering prices far below those stipulated in the pricing formula provided under the Sugar Amendment Act, 2025. Out-growers also complained about the continued five percent trash deduction by some millers, despite the Sugar Council’s earlier directive abolishing the practice.
Mwebesa warned that persistently low returns for farmers, relative to input and transport costs, threaten long-term production, investment and the resilience of the sugar sector. He further questioned the decision by some millers to reduce sugarcane prices during a politically sensitive campaign period ahead of the general elections, cautioning that such actions risk undermining support for the ruling National Resistance Movement (NRM).
“Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the new Sugar Amendment Act, 2025,” Mwebesa emphasized.
Responding on behalf of millers, Henry Kata of GM Sugar attributed price fluctuations to several underlying factors that, he said, require joint attention from the ministry and the Sugar Industry Stakeholders Council.
“Although the Sugar Amendment Act of 2025 provides a formula for sugarcane pricing, we end up offering different prices because of other factors at play. Our production costs differ, and therefore we cannot always offer the same prices,” Kata explained.
State Minister Frederick Ngobi Gume appealed to millers offering lower prices to revise them upwards for a two-month interim period, pending a comprehensive national review of sugarcane pricing by the Sugar Industry Stakeholders Council. He said the move was necessary to maintain social and political stability in Busoga during the current political season.
Former minister Daudi Migereko reminded millers of the long-standing partnership between the sugar industry and the NRM government.
“We have always considered you as partners in development, which is why we consult you before making decisions affecting the sugar sector. We therefore request a revision of your prices as we wait for the sugar council to review the matter,” Migereko said.
In the end, the sugar millers—led by Akash of GM Sugar, Yogesh Agri and Ismail Nasifu of Kamuli Sugar—unanimously agreed to set a minimum price of UGX 125,000 per tonne of sugarcane across the entire Busoga region for a period of two months, pending a full review by the Sugar Industry Stakeholders Council.
The Chairperson of the Sugar Industry Stakeholders Council, Rajbir Singh Rai of Kinyara Sugar, urged millers to fully comply with the new law, noting that adherence to the pricing formula would promote harmony and sustainability within the sugar sector
