agriculture 16 April 2026 Daily Monitor (Uganda)
Sugar Amendment Act Brings Relief to Uganda's Sugarcane Farmers
President Yoweri Museveni signed the Sugar (Amendment) Act 2025 on May 31, introducing a pricing formula tied to market conditions and a stakeholder council to end exploitation and price swings that have plagued growers. Farmers stand to gain 50 percent of revenues from cane by-products like ethanol and electricity, with millers given two years to comply. Source: https://www.monitor.co.ug/uganda/news/national/new-law-breathes-sigh-of-relief-to-sugarcane-farmers-5426494
Uganda’s sugarcane farmers are optimistic about the newly enacted Sugar (Amendment) Act, 2025, signed by President Yoweri Museveni on May 31, 2025. The law introduces a transparent pricing formula based on market dynamics and establishes the Uganda Sugar Industry Stakeholder Council, uniting farmers, millers, and government officials to oversee pricing and standards.
For years, growers have endured volatile prices dropping from Shs240,000 to as low as Shs80,000 per ton, prompting many to quit due to poor returns amid high production costs. Deputy Speaker Thomas Tayebwa, speaking at the Greater Mukono Sugarcane Outgrowers Cooperative Society’s annual meeting in Buikwe District, highlighted how the reforms will ensure farmers receive 50 percent of profits from all sugarcane by-products, including electricity, molasses, ethanol, and fertilizers after costs.
Millers have a two-year grace period to install equipment for processing these by-products, after which farmers’ share rises to 55 percent. Tayebwa stressed uniform pricing across the industry and penalties for underutilizing capacity, aiming to eliminate discrepancies where some millers pay less.
Farmers like Julius Katerevu, chairperson of the Greater Mukono group and UNASGO, welcomed the changes, warning that ongoing low payouts threaten the sector’s stability and government revenue. Individual growers such as Simon Ssentogo expressed hope for better earnings, while Fred Nsubuga Muzanganda urged strict enforcement to avoid past implementation failures.
Concerns persist over a 5 percent ‘trash deduction’ on cane quality, but State Minister David Bahati noted that a regulation to abolish it is nearing approval by the Attorney General.
Source: Daily Monitor (Uganda)