Sugar Bill Re-tabled

The Sugar Bill 2016, which scraps off zoning and puts a standard pricing for sugarcane has been re-tabled be in Parliament following its rejection by the President.

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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 the factories.

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 industry.

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 industry.