The government has intervened to protect sugarcane farmers in the Busoga region following widespread complaints over exploitative pricing by some millers.
Out-growers reported being paid as little as UGX 90,000 per ton, sparking concern over farmer welfare and the sustainability of sugarcane production.
In response, Government, through the Ministry of Trade, Industry and Cooperatives, convened a high-level meeting with sugar millers and key sector stakeholders to stabilise the industry.
A minimum price of UGX 125,000 per ton has now been agreed for all sugarcane supplied in Busoga. The new rate takes immediate effect and will run for two months, pending a comprehensive national review of sugarcane pricing.
Key Decisions from the Meeting;
- Minimum sugarcane price set at UGX 125,000 per ton across Busoga
The move directly addresses out-growers’ complaints over low and arbitrary pricing - Pricing must comply with the Sugar Amendment Act, 2025, which provides a clear pricing formula.
- 5 percent trash deductions previously imposed by some millers were declared unlawful.
- All sugar millers in Busoga committed to full compliance.
- The intervention is aimed at protecting farmer incomes, ensuring sustainable production, and maintaining social stability.
Government emphasized that fair and predictable sugarcane pricing is essential not only for farmers’ livelihoods but also for mill supply stability and the long-term resilience of Uganda’s sugar industry.
The intervention reaffirms government’s commitment to listening to farmers, enforcing the law, and safeguarding livelihoods in one of Uganda’s key agricultural regions.