The government, through the Ministry of Trade, Industry and Cooperatives, together with sugar millers in the Busoga region, has set UGX 125,000 as the minimum price per ton of sugarcane in the region. This follows an outcry from some sugarcane out-growers in Busoga who have been taking home as little as UGX 90,000 per ton of sugarcane.
The minimum price of sugarcane in Busoga was agreed upon during a meeting between officials from the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and sugar millers in the Busoga region. The meeting took place on Friday, 19th December 2025, at the ministry offices.
The meeting was attended by six sugar millers from Busoga, namely Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar, and Bugiri Sugar. Also in attendance 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 ministry officials.
While chairing the meeting, the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa, said his ministry had received complaints from sugarcane out-growers regarding low sugarcane prices.
“We have been receiving concerns from sugarcane out-growers regarding arbitrarily low sugarcane prices, which we consider valid and which directly impact farmer livelihoods, mill supply stability, and social and political stability in sugarcane-growing areas,” said Mwebesa.
Most of the concerns raised by sugarcane farmers were directed at GM Sugar, Kaliro Sugar, Bugiri Sugar, and Kamuli Sugar millers, whom the farmers claimed were offering prices far below those indicated in the sugar pricing formula under the Sugar Amendment Act 2025. There were also concerns from out-growers about the five percent deduction for trash that some millers still charge farmers, despite the Sugar Council having pronounced itself on the matter and removed the deduction.
Mwebesa said the government recognizes that if farmers earn low returns relative to input and transport costs, long-term production, investment, and sector resilience are at risk.
He tasked the sugar millers to explain why they had reduced sugarcane prices during the campaign period for the upcoming general elections, a move he said risks denting support for the National Resistance Movement (NRM) party. He urged the millers to desist from practices that negatively affect farmers’ incomes and earnings.
“Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the new Sugar Amendment Act 2025,” Mwebesa explained.
In response, Henry Kata from GM Sugar informed the meeting that fluctuating sugarcane prices are caused by several factors that the Ministry of Trade, Industry and Cooperatives and the Sugar Industry Stakeholders Council need to examine and address.
“Although the Sugar Amendment Act of 2025 provides a formula for sugarcane pricing, we end up offering different prices to farmers because of other factors at play. For instance, our costs of production differ, and therefore we cannot all offer the same prices,” explained Kata.
Minister Gume requested millers offering lower prices to revise them upwards for a period of two months, pending a nationwide review of sugarcane pricing by the Sugar Industry Stakeholders Council. He said the move would ensure social and political stability in the Busoga region, especially during the current political period.
Daudi Migereko told the millers that the NRM government has worked with them over the years to ensure stability in the sugar sector.
“We have always considered you our partners in development, which is why we consult you before making decisions regarding the sugar sector. That is why we request a revision of your prices as we wait for the Sugar Council to address the matter,” said Migereko.
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 ton of sugarcane across the entire Busoga region for a period of two months, pending a review by the Sugar Council.
The Chairperson of the Sugar Industry Stakeholders Council, Rajbir Singh Rai of Kinyara Sugar, urged sugar millers to comply with the new law, which provides a clear formula for sugarcane pricing, to ensure harmony in the sugar sector.
