President Yoweri Kaguta Museveni has officially signed the Sugarcane (Amendment) Bill, 2023, into law, urging cooperation between sugar millers and growers to ensure the long-term survival and prosperity of Uganda’s sugar industry.
“If you don’t want to kill this industry, you must cooperate,” the President warned. “Without cooperation, factories will collapse, and farmers will have no market. That harms both growers and processors.”
The newly signed legislation comes after Parliament passed the bill last month, following extensive consultations with sugarcane farmers, millers, and Members of Parliament from sugar-growing regions—Buganda, Busoga, Bunyoro, and Acholi. Key points of contention included the structure of the Sugar Industry Stakeholders Council, the pricing formula for sugarcane, and funding for council operations.
According to the Minister of Trade, Industry, and Cooperatives, Hon. Francis Mwebesa, the law strengthens self-regulation of the sugar industry and revises the composition of the council to increase farmer representation.
The council will include a rotating chairperson selected from either millers or farmers for a two-year term, four representatives of farmers, three representatives of millers, and Permanent Secretaries (or their representatives) from the Ministries of Trade, Agriculture, and Finance.
“The rotating chairperson model avoids monopolies and encourages inclusive decision-making,” Hon. Mwebesa noted.
The bill also establishes a Sugar Development Fund, financed by contributions from millers (70%) and outgrowers (30%), to support council activities and promote sector development.
Another major reform includes sharing proceeds from sugar and by-products, such as ethanol and electricity, between millers and growers. President Museveni welcomed this move, stating: “Processors earn more than just from sugar. Sharing value from all outputs is a fair deal. I am now satisfied to sign this law.”
He also advised millers to discourage smallholder farmers, especially those with less than four acres, from growing sugarcane. Instead, he recommended they follow the 4-acre model, which promotes a diverse mix of farming: coffee, fruits, pasture, food crops, poultry, piggery, and fish farming.
Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa, who was present at the signing, praised the President for ensuring consensus. “We had moments of deadlock during debate, but you guided us to seek mediation and consensus first,” Tayebwa said.
Also in attendance were Third Deputy Prime Minister Hon. Rukia Nakadama, Minister for the Presidency Hon. Babirye Milly Babalanda, Minister of State for Trade (Industry) Hon. David Bahati, MPs from sugarcane-growing regions, and leaders of farmers’ associations.
The new law is expected to strengthen governance, improve farmer incomes, and bring greater stability to Uganda’s sugar industry.
