Sugarcane farmers in the Busoga sub-region have accused millers of defying the government’s directive on the minimum price of sugarcane, noting that the practice is pushing growers into losses despite rising production costs.
The government recently set a temporary minimum price of Shs125,000 per tonne to protect farmers, but many say it remains too low and some millers are still buying it Shs105,000.
The Monitor has seen receipts from some factories confirming the low payments.
Mr Hassan Ngobi, a sugarcane farmer in Mayuge district, described the reductions as unfair and exploitative.
‘We invest heavily in land preparation, labour and inputs, yet when harvest comes, the millers dictate prices , even though the government stepped in to set the minimum price,’ he said.
Mr Musa Kabugo, another farmer said that the absence of a farmer-owned mill is fueling exploitation in the region.
‘Shs125,000 is still too low. With the 18-month production cycle, the investment is high, yet farmers need at least Shs180,000 to break even. Because of poverty, many are forced to sell early, sometimes for less than Shs120,000,’ he said.
The Chairperson of the Greater Busoga Sugarcane Farmers’ Union (GBSGU), Mr Godfrey Biriwali, said, ‘Farmers are frustrated because they invest heavily in sugarcane growing, but the returns no longer justify the effort,’ he said.
‘Farmers earn only from selling cane, yet millers get sugar, molasses, ethanol, sweets, bagasse and fertilizers, among others.’
The Chairperson of the Busoga Sugarcane Out-growers Association, Mr David Christopher Mwombe, said: ‘Kakira Sugar Factory has maintained the Shs125,000 temporary minimum price, while some other factories are still cheating farmers.’
Mr Mwombe said that in Kenya, some millers pay up to Shs150,000 per tonne.
The Chairperson of the Uganda National Association of Sugarcane Growers (UNASGO), Mr Julius Katerevu, said farmers are pushing the Uganda Sugar Industry Stakeholders’ Council to fully play its role.
‘We do not want to see the exploitation of farmers again now that the council exists. We want it functioning so that the issue of prices is sorted,’ he said.
The Uganda Sugar Industry Stakeholders’ Council, established under the Sugarcane (Amendment) Act, 2025, regulates the country’s sugar sector.
Appointed by Cabinet in October 2025, it promotes fair pricing, oversees mill licensing and expansion, resolves disputes, and ensures inclusive governance.
The council has 10 members, including representatives of farmers, millers, and the Trade, Agriculture, and Finance ministries.
The First Deputy Prime Minister and Minister for East African Affairs, Ms Rebecca Alitwala Kadaga, said the government is aware of the complaints, pledging to engage millers to ensure compliance.
Background
Prices peaked at Shs240,000 per tonne in December 2023 but fell sharply, prompting government intervention. After some millers cut payments to Shs80,000-90,000 per tonne in 2025, a December 19 meeting chaired by President Museveni set the temporary minimum price of Shs125000 per tonne.