Sugarcane farmers threaten to stop supplying millers

JINJA | The drop in Sugarcane prices from 250,000 to 130,000 per ton has irked farmers in Busoga and Greater Mukono, who have threatened to stop supplying their cane to millers.

The disgruntled farmers have given millers one week to revise the prices or they stop supplying them with their cane.

The farmers, who suspect collusion among millers, have now rejuvenated their plans to open their own Sugar Mill in Luuka district.

Julius Katerevu, chairperson of Sugarcane farmers in Greater Mukono including Kayunga, Buikwe and Mukono, says on average farmers spend Shs230,000 to produce one tonneof sugarcane, hence the least price millers should pay per ton is Shs250,000.

"For us to break even, we ought to be paid not less than Shs230,000 per ton," he said.

During a stakeholders meeting at Bugembe Stadium in Jinja City which attracted farmers from all districts in Busoga subregion and neighbouring their counterparts from Kayunga, Buikwe and Mukono they resolved to strike until millers increase prices to Shs250,000.

"Millers are telling us that the reduction in cane prices are as a result of drop in sugar prices across the country but this is not true because they produce several products from our sugarcane including sanitizers, papers, sweets, biogas, manure," Daniel Kamaga, a farmer from Luuka, said.

The concerned farmers think there is connivance among millers hence they want government to expedite plans to construct their own mill as promised.

Isa Budhugo, chairperson of Uganda National Association of Sugarcane Farmers, says Uganda Development Cooperation (UDC) is still holding their money meant to start the construction of the mill.

"The government released Shs6 billion through UDC but the money has been lying idle on the accounts we need to start our mill to avoid collisions with Indians (owners of sugar mills).

Mr Budhugo says they will petition the President to intervene since the matter is beyond ministerial level.

"We have tried writing to line ministers about this matter but no help, so we shall petition the President by Wednesday next week," Budhugo said.

Edward Mutebi  a sugarcane farmer in Kayunga, said there is need for government interventions and also operationalisation of the Sugar Act 2020, which has been on the shelves since its enactment.

"The law was enacted in 2020 but it has never worked because it talks about forming a Sugar Board comprising of farmers, millers, and government representatives but it has not been formed yet," he said.

On behalf of millers, Wilber Mubiru, the deputy manager of Sugar Corporation of Uganda Ltd (SCOUL), attributed  the drop in sugarcane prices to the reduction on sugar prices in thr market.

"Farmers should know we have a small Market and we are many millers so that's the reason sugar prices dropped and consquently affected the cane prices," he said.

Mubiru said unless Uganda sugar gets market in other neighbouring countries, price fluctuations cannot be avoided.

However, he agrees with the farmers that there's need for the regulatory authority in the sugar industry.

"In Kenya and Tanzania there is a stakeholders body which sits and sets prices but we don't have such in Uganda, the reason farmers are suffering," he said.

The farmers also want government to amend the law and put them under the Ministry of Agriculture, Animal industry and Fisheries instead of putting them under the Ministry of Trade which they say sides with investors.

Other issues which the farmers want to be addressed include the suspension of operations CN Sugar Factory in Namayingo, ban on the weigh bridges among others, they have vowed to run to the constitutional court if their grievances are not addressed expeditiously.