The licensing of multiple suagr factories in Busoga sub-region has disrupted the supply of sugarcanes, leading to adverse consequences for the industry, Uganda Sugar Manufacturers Association (USMA) reveals. 

For that matter, USMA is calling for the revocation of the licenses of two sugar factories in Busoga – Shakti Sugar located in Kamuli district and Bon Sugar Mill Ltd (C.N Sugar Ltd) located in Bugiri district.

The USMA says the two companies have violated the Sugar Policy and contributed to an unstable supply of sugarcanes in the region.

The two firms are part of the seven companies the trade ministry licensed since the implementation of the Sugar Act. Others are Modern Agri Sugar Ltd, Kikajo Sugar Ltd, Kelon Sugar Ltd, and Tyrol Investments Ltd.

However, the USMA contends that the licensing of multiple factories within one sub-region has disrupted the supply chain of the canes.

The USMA raised concerns about the adverse effects of these licenses on the sugar industry’s growth, prompting the Ministry of Trade to issue notices preventing new millers from undertaking any development until a sugar board is established

Jim Kabeho, the chairperson of USMA, emphasizes the need for a council to regulate and manage the licensing of new sugar factories in order to address the instability in cane supply.

Millers currently operate below optimal crushing capacities due to cane shortages attributed to poaching

Contradiction

The Chairperson of the Uganda Sugarcane Growers Association (USGA), Isa Budhugo, contends that factories between 20 and 30 percent completion cannot be relocated, emphasizing the absence of zoning provisions in the sugar law

Budhugo attributes the cane shortage to millers halting agricultural aid to farmers.

He advocates for more sugar factories in Busoga, citing the vast available land, with 2.4 million acres but only 300,000 acres occupied by sugarcane, according to the 2014 population and housing census

. . . .    ing census.