The Leader of Opposition, Joel Ssenyonyi has decried the low prices of sugar cane given to farmers in Busoga, saying this has dropped from Shs200,000 per ton to now just Shs98,000.
The details are contained in his report on the drastic fall of sugarcane prices, whose findings followed an oversight visit to Busoga sub region recently.
“Farmers sell sugarcane to millers at extremely low prices, often below production costs. For instance, in 2023, the price per ton was UGX 98,000, a decline from previous figures which would at times go to beyond Shs200,000. Even then, what the farmer eventually gets is so meagre due to the other operational costs such as harvesting, cutting, loading, and so on,” explained Ssenyonyi .
“Our economy was liberalized, meaning that forces of demand and supply will always be at play. However, this does not take away government’s role to regulate and ensure that people are not ripped off, and specifically in this case to ensure that sugarcane farmers earn a fair income from their toil,” Ssenyonyi added.
According to the report, the sugar cane business earns the country about UGX300bn in taxes annually and creates about 100000 jobs directly and indirectly. The industry, the report says, produces over 150megawatts of electricity from bagasse ; about 70megawatts is supplied to the national grid.
Busoga is the leading sugar cane grower by acreage. It also has the biggest number of sugar mills.
In the report, the MPs recommend that the forces of demand and supply to determin the market prices; govt through the trade ministry ensure timely payments are made to farmers,; and that government through Uganda Development Bank should fast track the purchase of land identified in Luuka district to pave way for the construction of sugar factory to be owned by farmers as Preside Yoweri Museveni recently promised.
Ssenyonyi said addressing the challenges facing sugar cane industry requires a multi stakeholder approach including government interventions, farmers empowerment and private sector accountability.
