In a major breakthrough for Ugandan sugarcane farmers, a new revenue-sharing agreement was reached on Wednesday, January 29, 2025, between farmers and millers. The agreement, which will be enshrined in law through the Sugar (Amendment) Bill, 2023, ensures that farmers will receive a significant share of the proceeds from sugar and its by-products.
Under the new agreement, millers will deduct 45% of production costs and then share 55% of the remaining balance with farmers who supply sugarcane. This move is expected to significantly benefit farmers, who have long struggled to make a profit from their sugarcane crops.
“We are thrilled with this new agreement,” said Julius Katerevu, Chairman of the Greater Mukono Sugarcane Growers Cooperative Society Ltd. “For too long, farmers have been struggling to make ends meet. This new agreement will help us break even and earn a decent income from our hard work.”
The agreement was reached after a meeting between farmers and millers, chaired by Deputy Speaker Thomas Tayebwa at the Parliament of Uganda on Wednesday. The meeting aimed to resolve long-standing disagreements between the two groups over the Sugar Bill.
In addition to the revenue-sharing agreement, the meeting also resolved to impose a minimum recovery rate of 9% on millers for each ton of sugarcane. This move is designed to reduce the harvesting of immature sugarcane, which can lead to lower yields and inferior-quality sugar.
The Sugar (Amendment) Bill, 2023, which is expected to be passed into law soon, will establish the Sugar Council, comprising three millers and four farmers, to regulate the sugar industry. The council will be responsible for ensuring the fair and transparent implementation of the new revenue-sharing agreement.
This new agreement is a major boost for Ugandan sugarcane farmers, who have long faced challenges in turning a profit from their crops. It is expected to increase investment in the sugar industry and improve the livelihoods of farmers and their families.
However, sugarcane farmers in the Busoga sub-region are urging the government to swiftly address ongoing challenges in the industry, including low prices offered by sugar millers and the underutilization of sugarcane by-products.
Addressing the media at the Source of the Nile Agriculture Showground in Jinja City on Thursday, January 30, 2025, the farmers—who had met with Deputy Speaker Thomas Tayebwa earlier this week—expressed their concerns about the exploitation they face at the hands of sugar millers. They called for the amendment of the Sugar Bill to ensure fair prices for sugarcane and to promote their economic well-being.
Isa Budugo, Chairperson of the Uganda National Association of Sugarcane Growers, highlighted the need to regulate the weighing scales used by sugar millers. “Although the scales reduce transport costs, they can be detrimental to farmers’ earnings,” he said.
The farmers also emphasized the importance of promoting sugarcane by-products such as bagasse and molasses, which can diversify the industry and create new economic opportunities.
In a positive development, Deputy Speaker Thomas Tayebwa assured the farmers that their concerns would be addressed. “We will work with the government to ensure that the Sugar Bill is amended to benefit sugarcane farmers,” he said.
The meeting was seen as a step in the right direction, with farmers expressing optimism about the future of the industry. “We are hopeful that the government will listen to our concerns and take action to support us,” said Haminsi Mukama Ndoote, a sugarcane farmer from the Busoga sub-region.
This development is expected to have a positive impact on the livelihoods of sugarcane farmers in the region, who have long struggled with low prices and exploitation.
