Sugarcane farmers want govt to set price

A girl sells sugarcane at Bamasaba cultural village in Mutoto Sub-County, Mbale. Sugarcane farmers want government to set the price so that they are not cheated. PHOTO BY YAHUDU KITUNZI

What you need to know:

Pricing. The sugar price is now determined by the market

Kampala.

Government should set up a minimum price for sugarcane to protect farmers from being cheated by millers, farmers have demanded.

Currently, the price for sugarcane is determined by the sugar price on the market yet the same companies are producing other products out of sugarcane such as electricity and ethanol whose market prices are higher than that of sugar.

Farmers say millers are cheating them because payment is determined basing on the sugar content in the cane but does not consider byproducts such as molasses that millers later sell.

According to Masindi Sugarcane Growers Association Limited chairman Robert Atugonza, the recommendation was agreed upon with representatives of sugarcane farmers in Masindi and out growers of Kinyara Sugar Works Limited.

“In Uganda, it takes a farmer about 18 months to harvest sugarcane but we earn the lowest price in the East Africa region. Miller companies who process the sugarcane and sell it earn over 60 per cent while farmers pocket about 40 per cent.

If you compare with Tanzania, farmers earn 56 per cent and Kenyan farmers pocket about 50 per cent. We call upon government to ensure that a formula is set for local farmers to earn 60 per cent,” Mr Atugonza read the recommendations.

Speaking after the one-day sugarcane farmers meeting last week to discuss the sugarcane draft bill at Kinyara Secondary School, Masindi, Mr Atugonza said farmers are not protected.

“We are merely a factor of production, just another commodity, with no more chance of improving our conditions.”
The recommendations were reached after case studies from South Africa were presented by Eden Forestry Company, chief executive officer Michael Mugabira, who also is also a sugarcane farmer in the district said.

The sugar board with three farmers’ representatives and four miller representatives, was also proposed to regulate the sugar sector.

The sugar bill
Bill. Last year, Cabinet approved proposals of the Sugar Control Bill to regulate the industry.

Industries. The number of sugar industries had spiralled out of control to over 23, with some only importing and repackaging for re-export.