Busoga cane farmers strike over low prices
Aggrieved. Sugarcane farmers and dealers at Kakira Sugar Works factory in Jinja District in April. Photo by Tausi Nakato
What you need to know:
- Ms Kyambadde argued that although Busoga has recorded 500,000 tonnes of excess sugarcane in the last two months, the local sugar millers can process all the mature sugarcane.
Jinja. Sugarcane farmers in Busoga Sub-region have stopped supplying sugarcane to millers following a reduction in its prices from Shs128,000 to Shs120,000 per tonne.
Mr Issa Budhugo, the chairperson of Busoga Sugarcane Out growers Association (Busga), yesterday said the strike, which started on Monday will continue until millers increase the prices, adding that they incur a lot of production costs.
The strike is currently affecting six sugar factories, including Kakira in Jinja, Mayuge (Mayuge), GM Sugar (Buikwe), Kamuli Sugar and Kaliro Sugar.
“All farmers in Busoga have halted supplying sugarcane to millers until a Memorandum of Understanding is put in place. We want them (millers) to increase the prices to at least Shs140,000 per tonne after which we shall call off the strike,’’ he said.
When contacted, Mr Jim Kabeho, the chairperson of Uganda Sugar Manufactures Association, said the decline is due to a reduction in sugar prices.
Mr Kabeho said factories currently have a big stock of sugar following reduction in export volumes.
“Factories are still stuck with about 800,000 kilogrammes of sugar, we have reduced the price of sugar and automatically the price of sugarcane has to reduce,’’ he said.
BSGA records indicate that Busoga region has 20,000 large scale sugarcane farmers.
Previously, the farmers had a proposal of exporting raw sugarcane to neighbouring countries.
However, the Trade and Industry minister, Ms Amelia Kyambadde, last week rejected the move on grounds that the exportation policy limits selling raw materials of locally manufactured goods to foreigners, adding that the plan would hamper industrial growth.
Ms Kyambadde argued that although Busoga has recorded 500,000 tonnes of excess sugarcane in the last two months, the local sugar millers can process all the mature sugarcane.
