The Sugar Bill 2016 has been re-tabled in Parliament.
In November, Parliament passed the Sugar Bill which is meant to ensure that
there is a sustainable, diversified, harmonized, modern and competitive sugar
sector to meet domestic, regional and International sugar requirements.
However, President Museveni refused to assent to the
bill saying that the lack of zoning is killing the sugar industry in Uganda, as
small new companies undermine the big historical players like Kakira, Lugazi and Kinyara Sugar companies.
The bill was, however, re-tabled on Wednesday by Michael Kafabusa
Werikhe, the Bungokho County MP.
Museveni in his letter dated 1st March 2019 to Parliament read by
the Deputy Speaker Jacob Oulanyah directed Parliament to ensure that zoning is
added in the proposed law.
He says small farmers of less than six acres should not be allowed
into growing sugar cane, but medium and large scale farmers should partner with
Oulanyah directed Parliament's committee on Trade to handle the
bill looking at the request of the President in two weeks’ time.
//Cue in: “Kakira’s sugar production…
Cue out…lugazi and kinyara”//.
There has not been a comprehensive law to regulate the sugar
industry, which has led to a fight between the out growers and the millers and
conflicts between the giant sugar manufacturers and new players in the
Initially, sugar companies funded an out-grower system where a company gives an out-grower seeds and fertilizers, in return being assured of
purchasing raw products in form of the canes.
This led to the domination of sugar territories by the big
companies, while the small and new companies struggled to get supply, leading to
a number of challenges that include sugar cane poaching, and price differences
between the players.
The bill also establishes the Uganda Sugar Board comprising of
Government representation, Ministry of Finance, Sugar cane out growers and
Millers who will help in the regulation and development of the sugar