President Yoweri Kaguta Museveni has officially enacted the Sugarcane (Amendment) Bill, 2023, emphasizing the need for harmony between sugar millers and growers to ensure the industry’s continued growth and stability. He highlighted that the collapse of cooperation could lead to the downfall of sugar factories, which would, in turn, leave farmers without markets and harm processors as well.
The Bill, recently passed by Parliament, followed extensive consultations involving sugarcane farmers, millers, and legislators from major sugar-growing regions such as Buganda, Busoga, Bunyoro, and Acholi. These discussions focused on sensitive matters including the makeup of the Sugar Industry Stakeholders Council, sugarcane pricing methods, and financial support for council activities.
Before the signing, Trade, Industry, and Cooperatives Minister Hon. Mwebesa Francis briefed President Museveni on the Bill’s provision allowing the council to self-regulate, aligning with the framework set by the Sugar Act of 2020. The council will consist of a chairperson, four farmer representatives, three miller representatives, and one representative each from the ministries of Trade, Agriculture, and Finance.
Minister Mwebesa explained that the chairperson would be chosen from among the farmers and millers on a rotating basis for a two-year term. This approach is intended to increase farmer representation and prevent any group from dominating leadership, promoting balanced and collaborative governance.
A Sugar Development Fund will be created, with millers contributing 70% and outgrowers 30%, to support the council’s operations.
President Museveni was also informed that under the new law, sugarcane millers will share the profits from both sugar and its by-products—such as ethanol and electricity—with farmers. He expressed satisfaction with the new structure, noting that the processors gain substantial value beyond just sugar production.
Additionally, the President advised against encouraging smallholders, especially those with less than four acres of land, to grow sugarcane. Instead, he reiterated support for the “4-acre model,” which includes one acre each for coffee, fruits, pasture for dairy, and food crops. He also recommended poultry, piggery, and fish farming as suitable alternatives for such farmers.
Deputy Speaker of Parliament Rt. Hon. Thomas Tayebwa commended President Museveni for his guidance throughout the legislative process. Tayebwa acknowledged the challenges and disagreements that arose during parliamentary debates, praising the President for insisting on consensus before moving forward.
The signing was witnessed by several government officials, including the third Deputy Prime Minister Hon. Rukia Nakadama, Minister for the Presidency Hon. Babirye Milly Babalanda, State Minister for Trade (Industry) Hon. David Bahati, MPs from sugar-producing areas, and leaders from sugarcane growers’ associations across Buganda, Busoga, and Bunyoro.