Atiak Sugar Factory Production Delays Linked to Insufficient Sugarcane Supply

Atiak Sugar Ltd faces significant hurdles in resuming full-scale sugar production as initially planned for April 2027. Sources indicate that the primary challenge is the inadequate quantity of sugarcane available on the factory’s plantation, which is insufficient to support continuous commercial operations.

The government has sought an additional Shs37.9 billion to invest in a water conveyance system from the River Nile for irrigation, aiming to ensure year-round production. However, internal reports suggest that even with the recent mechanization of production, only 4,000 hectares of sugarcane have been planted, a figure deemed insufficient to operate the factory for more than a fortnight.

A significant portion of the current sugarcane is being used for seed to expand the plantation, with the goal of reaching an estimated 20,000 acres of mature canes required for full operations. This reality contradicts government statements suggesting production would commence sooner.

Recent supplementary funding requests have increased the total government expenditure on the factory to over Shs769 billion, sparking criticism from opposition leaders who describe the project as a “scheme to extort from taxpayers” with no tangible output.

Further complicating matters are disputes with local communities over land acquisition and compensation for the proposed water pipeline project. Residents are protesting non-payment before work begins, echoing past grievances.

Despite these challenges, local officials express optimism that patience will lead to the resumption of production once planting and irrigation efforts mature. The factory previously suspended operations in mid-2022 due to a lack of sugarcane, having operated for only 19 months since its commissioning in October 2020.

Source: https://www.monitor.co.ug/uganda/news/national/why-atiak-factory-will-not-produce-sugar-any-sooner-5461396