Farmers supplying sugarcane to Kamuli Sugar Limited and Mayuge Sugar Industries Limited will now receive Shs115,000 per tonne following price adjustments announced by the two companies on Wednesday, December 11, 2025.
In a notice addressed to farmers, Kamuli Sugar Limited said it had reduced the price of sugarcane from Shs120,000 to Shs115,000 per tonne with immediate effect. The company did not provide reasons for the reduction.
On the same day, Mayuge Sugar Industries Limited also announced that it would purchase sugarcane at Shs115,000 per tonne starting December 12, 2025. The company further informed farmers that deliveries would only be accepted upon presentation of valid harvesting permits at the factory gate.
The announcements come at a time when farmers are preparing for peak harvesting, with many expressing concern over price reductions amid rising production and transport costs.
Sugarcane farming is a major source of livelihood in Busoga sub-region, and pricing decisions by millers directly affect thousands of households that depend on the crop for income.
In November last year, the Leader of the Opposition, Joel Ssenyonyi demanded that government intervenes and regulates sugarcane prices.
“The economy is liberalised and the forces of demand and supply are at play but it does not stop government from regulating the pricing to ensure that people are not ripped off and that farmers get a fair income from their toil,” Ssenyonyi said.
Ssenyonyi wasmpresenting a statement to Parliament on Thursday, 28 November 2024 following an oversight visit he undertook with other lawmakers to Busoga region.
He added that the sugarcane pricing which is calculated based on one by-product (sugar) is unfair and should be reviewed to include at least five by-products including bagasse, molasses and ethanol among others.
Ssenyonyi also condemned the decision by millers to charge farmers 18 per cent Value Added Tax (VAT) on the sugarcane saying that according to the law, the tax is only charged on finished products.
