The Ugandan government has stepped in to stabilise the sugarcane sector in Busoga, announcing a minimum price guarantee of Shs125,000 per tonne of sugarcane following growing complaints from out-growers over low farmgate prices.
The intervention is expected to ease tensions, protect farmer livelihoods and ensure stability in one of the country’s key agricultural value chains.
The decision was reached during a high-level meeting held on Friday, December 19, 2025, in Kampala. The meeting brought together officials from the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and six sugar milling companies operating in Busoga. It was chaired by the Minister of Trade, Industry and Cooperatives, Francis Mwebesa.
Among those in attendance were State Minister for Cooperatives and Bulamogi North West MP Frederick Ngobi Gume, Chairperson of the National Biofuels Committee and former minister Daudi Migereko, senior ministry officials, and representatives from Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar and Bugiri Sugar.
Minister Mwebesa said the ministry had received numerous complaints from farmers who were earning as little as Shs90,000 per tonne, well below the pricing formula established under the Sugar Amendment Act 2025. “We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and directly impact farmer livelihoods, mill supply stability, and social and political stability in sugarcane-growing areas,” Mwebesa said.
The complaints mainly targeted GM Sugar, Kaliro Sugar, Bugiri Sugar and Kamuli Sugar, with farmers also protesting the continued five percent trash deduction, despite its earlier removal by the Sugar Industry Stakeholders Council. Mwebesa warned that poor returns, coupled with rising input and transport costs, threaten long-term production, investment and resilience within the sugar industry.
He further questioned the timing of the price cuts during an election period, stating, “Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the Sugar Amendment Act 2025.”
GM Sugar’s Henry Kata explained that pricing differences are influenced by varying production costs and urged the ministry to review the broader challenges affecting millers. In response, Minister Gume called on millers to raise prices for at least two months, noting, “This measure will help ensure social and political stability in Busoga during the current political period.”
The millers unanimously agreed to set a minimum price of Shs125,000 per tonne across Busoga for the next two months. The move is expected to restore confidence among farmers, stabilise incomes and support sustained growth in Uganda’s sugarcane sector.