President Yoweri Museveni has officially signed the Sugarcane (Amendment) Bill, 2023 into law, marking a significant shift in Uganda’s sugar industry. The new law mandates sugar millers to share proceeds from sugar and its by-products with farmers, aiming to foster cooperation and sustainability across the sector.
“If you don’t want to kill this industry, you should all cooperate. If the sugar factories collapse, even new farmers will have nowhere to sell their sugar. But it’s also not good for the processors,” President Museveni said during the signing ceremony at State House.
Millers are now required to share profits from sugar and by-products like ethanol and electricity with outgrowers.
The law provides for self-regulation through a multi-stakeholder council. The council will include:
- 4 representatives from farmers
- 3 from millers
- 1 representative each from the Ministries of Trade, Agriculture, and Finance
- A chairperson with industry expertise, selected from either farmers or millers on a rotational, two-year basis
“Appointing the chairperson on a rotational basis avoids dominance and fosters inclusive decision-making,” noted Trade Minister Hon. Francis Mwebesa.
A fund will be established to support council activities, with contributions made in a 70:30 ratio by millers and outgrowers respectively.
President Museveni also cautioned against encouraging smallholder farmers (those with under four acres of land) to grow sugarcane. Instead, he advocated for the 4-acre model, which promotes:
- One acre for coffee
- One acre for fruits
- One acre for dairy pasture
- One acre for food crops
- Additional activities such as poultry, piggery, and fish farming
“This diversified model ensures food security and steady household incomes,” he emphasized.
Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa, commended the President for his leadership throughout the bill’s deliberations.
“We faced contentious issues, but your guidance led to consensus. That’s why we returned to the table and achieved mediation,” Tayebwa said.
The signing ceremony drew several dignitaries, including:
- Third Deputy Prime Minister Hon. Rukia Nakadama
- Minister for Presidency Hon. Babirye Milly Babalanda
- Minister of State for Trade (Industry) Hon. David Bahati
- MPs from sugarcane-growing regions
- Leaders of sugarcane growers’ associations from Buganda, Busoga, and Bunyoro
