Mayuge: President Yoweri Museveni’s pledge to buy the Mayuge Sugar Factory for farmers has been met with deep skepticism among sugarcane growers in the region, with many dismissing it as a political move aimed at securing votes ahead of the 2026 elections.
In a meeting with sugarcane farmers at Kityerera State Lodge in Mayuge District on August 6, 2025 to discuss the industry’s future, President Museveni in a dramatic turn of events revealed that the owners of Mayuge Sugar Factory had approached him, offering to sell the facility to the government.
“I earlier promised to give you a sugar factory, but I haven’t done it,” Museveni told the cheering crowd. “These people of Mayuge Sugar asked me to take over the factory, but now it is you to decide.”
The farmers’ response was unanimous—loud chants of “Yes Mzee, buy the factory!”
While supportive of the takeover, farmers voiced longstanding frustrations.
“We grow the cane that sweetens the country, but our pockets remain empty,” lamented Isa Budhugo, a prominent out-growers’ leader.
“They deduct 5% claiming it’s trash, yet our sugarcane is cut clean in the plantations,” Budhugo added, accusing millers of manipulating yields.
He added that while industry standards suggest one tonne of cane should yield 100 kilograms of sugar, some millers claim it produces only 50 kilograms. After pushback, farmers agreed on an 80-kilogram benchmark.
Abdul Waiswa Lumbuye, an investor and resident of Budebera Zone in Mayuge Town Council, says the plan will not change the fortunes of ordinary farmers.
“The price of sugarcane is determined by the market, not who owns the factory,” he explained. “We produce in large quantities but when the market is not available, prices remain low. This deal will only benefit leaders, while farmers in the villages continue to earn little.”
Lumbuye also questioned the timing of the move. “This is a trap. The President just wants to win over sugarcane farmers. Why is he doing this now, when we are in the political season?” he asked.
Pius Segonga, a farmer from Lwabala Village in Imanyiro Sub-county, echoed these concerns. “Even if they bought a sugar factory for each farmer, it wouldn’t improve our earnings,” he said.
In recent months, the plight of Busoga’s sugarcane farmers has drawn renewed government attention. In November 2024, the Leader of Opposition in Parliament, Joel Ssenyonyi, reported that cane prices had plummeted from Shs200,000 per tonne to just Shs98,000, a devastating blow to growers.
Presenting the report on the floor of Parliament last year, Ssenyonyi said government had earlier released over Shs8 billion to acquire land for sugar mills in Luuka and Buyende districts. Now, plans are in motion for a Shs135 billion farmer-owned sugar processing factory in Luuka, supervised by the Uganda Development Corporation (UDC) and financed directly by the Ministry of Finance.
The mill plants in Luuka and Buyende whose construction works were supposed to have been completed by 2024 was supposedly a fulfillment of President Museveni’s 2021 pledge to establish farmer owned processing mills to address the excess sugarcane within the sub-region.
Meeting political leaders at Civil Service College in Jinja a couple of years earlier, National Planning Authority (NPA) executive director, Joseph Muvawala, said feasibility studies confirmed the profitability of a farmer-owned plant over privately run mills.
“Private plants prioritize their own plantations. Our government plant will purchase all its sugarcane from farmers, ensuring a steady market,” Muvawala said.
In the same meeting, First Deputy Prime Minister Rebecca Kadaga called for “incubator projects” across Busoga’s 11 districts to diversify cane products into juice, paper bags, syrups, and other value-added goods.
While Finance minister Matia Kasaija urged unity among local leaders. “Grappling amongst yourselves will only slow down construction works,” he warned.
Another sore point is the delayed establishment of the Sugar Council, mandated by the Sugarcane (Amendment) Act, 2023, to mediate farmer-miller relations.
Trade Minister Francis Mwebesa blamed the delay on pending vetting of council members by the Ministry of Security, a process Museveni ordered to be investigated swiftly.
“What Busoga needs is a change in mindset, revival of cooperatives so we can access affordable loans at 5%, and better markets for our produce, even at local levels.”
Others fear the plan could create more problems than it solves. Sam Tatesa, a farmer from Bufulubi Parish in Imanyiro Sub-county, warned that the project could fuel corruption within local leadership.
“Sugarcane prices will drop abnormally, and payments to farmers will be delayed for weeks or months. Most of us lack the capital to keep our daily businesses running. If the factory is run on loans most of the time, it’s the farmers who will bear the brunt,” he said.
The sugar industry remains a key economic pillar for Busoga, employing thousands and contributing billions to Uganda’s economy. Yet, despite its potential, poverty remains widespread among sugarcane farmers, an issue many argue will not be solved by merely changing ownership of the factory.
Despite backing the Mayuge takeover, Museveni questioned whether sugarcane farming alone can transform smallholder livelihoods. Budhugo argued that an acre of cane, with fertilizers, can net Shs4 million annually. But Museveni dismissed this as inadequate.
“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,” the President said.
He urged adoption of “Ekibalo,” a diversified farming model combining sugarcane with livestock and poultry, and pledged to supply fertilizers to boost yields.
Busoga, Uganda’s leading sugarcane-growing region, is often described as the country’s “sweet heartland.” Its vast plantations feed five major sugar mills: Kakira Sugar Works, Mayuge Sugar Industries Limited, Bugiri Sugar, Kaliro Sugar, and Kamuli Sugar alongside four smaller-capacity processors.
The region’s cane fuels an industry that generates over Shs300 billion in annual tax revenue and produces more than 150 megawatts of electricity, with 70 megawatts supplied to the national grid, according to reports. But beneath this sugar-coated surface lies a bitter truth—poverty remains deeply entrenched. According to the Uganda Bureau of Statistics (2020), 1.2 million people in Busoga live in poverty, with 400,000 experiencing food poverty.
For decades, Busoga’s cane fields have powered Uganda’s sugar industry, but for many farmers, the economic returns remain elusive. As new factories are planned and old ones eyed for takeover, the big question remains—will these promises finally turn sugarcane into a true pathway out of poverty, or will Busoga remain trapped in a cycle where sweet production yields bitter livelihoods?
