The Uganda Sugar Manufacturers Association (USMA) Tuesday appeared before the Committee on Trade to present their proposals on the Sugar (Amendment) Bill, 2023.

The Association members led by their Chairperson, Jim Mwine Kabeho, are proposing that all sugar licences that were issued by the Ministry of Trade following the passing of the Sugar Act, 2020 should be revoked until a council is institute to determine the location of the mills.

The Committee chaired by Mine Mpaka, the Mbarara City South Member of Parliament, is processing the bill that seeks to provide for better development, regulation and promotion of the sugar industry and to provide for the establishment of the Uganda Sugar Industry Stakeholder Council.

The sugar industry is regulated under the Sugar Act, 2020 which established the Sugar Board as the body responsible for implementing the Act. However, because of the government policy on rationalisation which restricts the establishment of statutory bodies, the Sugar Board has never been established by government.

To address this challenge, the bill seeks to amend the Sugar Act 2020 to establish the Sugar Industry Stakeholder Council which would comprise representatives of stakeholders in the sugar industry and be funded by a sugar levy charged on millers.

The government shall only provide regulatory oversight over the activities of the Council through a few representatives on the Council and technical officers at the secretariat of the Council.

“We agree that the minister would continue to issue licenses but with recommendations from the council; once the Council is in place, it can put into place some regulations,” said Kabeho.

He opposed the requirement in the current law for sugar millers to share proceeds from sugarcane by- products with farmers at a rate of 50 percent, terming it impractical and a deterrent to investment.

“It should be noted that this percentage gives a minimum price and parties are free to agree to a higher sugar price; if we are to keep the sugar industry in Uganda competitive, the 50 percent is already higher than the world wide industry standard,” said Kabeho.

The association complained that the sugar market in Uganda is already low and uncompetitive in the region following low sugar prices in Kenya and Tanzania.

The association said the sugar levy slapped on millers to finance the activities of the Sugar Council should rope in farmers too. They argued that burdening only manufacturers with the levy is unfair.

The group also reintroduced the proposal of zoning of millers, suggesting that an individual miller should be at least 25 kilometres from the next miller, which MPs said is not in the Bill.