President Yoweri Kaguta Museveni has pledged to procure the Mayuge Sugar Factory and hand it over to sugarcane farmers in Busoga, fulfilling a commitment he made during the 2021 elections.
Speaking at a strategic meeting with sugarcane farmers and millers held at Kityelera State Lodge in Mayuge District on Wednesday, August 6, 2025, President Museveni said the owners of Mayuge Sugar Factory recently approached him, offering to sell the facility to the government. He, however, left the final decision to the farmers.
“I earlier promised to give you a sugar factory, but I haven’t done it. These people of Mayuge Sugar approached me recently, asking me to take over the factory. But now it is you to decide,” Museveni said.
The farmers responded with loud cheers, chanting, “Yes Mzee, buy the factory!”
The meeting brought together sugarcane farmers from across the country to discuss the progress, challenges, and sustainability of the sugarcane industry—particularly in Busoga, where the crop has become a dominant source of livelihood.
Despite its significance, sugarcane farming in the region continues to face setbacks, particularly around low prices and alleged exploitation by millers.
“They deduct 5% claiming it’s trash, yet our sugarcane is cut clean in the plantations,” complained Isa Budhugo, a prominent out-growers’ leader.
Farmers say they are being short-changed, with a ton of sugarcane currently fetching only Shs140,000, a price many argue is too low to cover production costs.
Budhugo also decried millers’ attempts to manipulate output estimates.
“We want a ton of sugarcane to produce 100 kilograms of sugar, which is the industry standard. But millers claimed it yields only 50 kilograms. We rejected that nonsense and agreed on at least 80 kilograms,” he said.
Budhugo further criticized the Ministry of Trade for delaying the formation of the Sugar Council, as mandated by the Sugarcane (Amendment) Act, 2023. The council is expected to mediate and regulate relations between farmers and millers.
However, Trade Minister Francis Mwebesa said the delay stems from the Ministry of Security, which is yet to vet the proposed council members. President Museveni has since directed that the verification be completed by Monday next week.
Despite supporting the factory takeover, President Museveni expressed doubts about sugarcane farming’s ability to transform the lives of smallholder farmers with limited land.
According to Budhugo, an acre of land, when supplemented with fertilizers, can earn a net profit of Shs4 million annually. But Museveni argued this income is insufficient for meaningful livelihood improvement.
“Budhugo, you want my people to remain poor. Earning Shs4 million from an acre per year is not enough. A farmer can’t educate their children on that,” Museveni said.
He encouraged farmers to adopt what he called “Ekibalo”—a diversified farming model that includes sugarcane, livestock, and poultry—to maximize land use and income potential.
To support sugarcane growers, the President also pledged to provide fertilizers to improve crop yields and promote more productive farming practices.
