The sugar industry in Uganda’s Busoga sub-region is facing mounting uncertainty as millers warn of potential factory closures, even as sugarcane farmers continue pressing for faster licensing of new factories.
Farmers from Namayingo, Bugiri, Buyende, Luuka, Mayuge, and neighboring districts have intensified calls on the Uganda Sugar Board to approve licenses for four pending factories, including the contested CN Sugar Factory in Namayingo.
Busoga, long regarded as Uganda’s sugar belt, has seen a rapid increase in licensed sugar factories in recent years.
While this expansion initially promised better market access for farmers and economic growth for the region, stakeholders now say it has exposed deeper structural, regulatory, and supply chain challenges that threaten the sustainability of the sugar value chain.
Questions are emerging over whether the region still requires additional sugar factories or if expansion has already outpaced the available sugarcane supply.
Several factories are reportedly operating below capacity due to inconsistent cane supply, forcing periodic stoppages in production.
At Bugiri Sugar Factory, plant manager Naboth Kusiima says the industry has shifted from previous years when trucks transporting sugarcane would queue for days awaiting processing.
“Earlier, high volumes compelled investors to expand milling capacity, but factories now experience operational disruptions due to declining cane supply,” Kusiima said, noting that the instability has undermined production planning and disrupted supply chains.
Millers emphasize that their concerns are not about blocking new investors but about maintaining a balanced regulatory environment that protects all actors in the sector.
They are urging regulators to reconsider the 25-kilometre distance guideline from the 2010 National Sugar Policy, as well as requirements for nucleus estates and outgrower support systems.
Millers argue that these measures are critical in preventing cane theft, poaching, and unsustainable competition, while safeguarding both industrial investment and food production.
Farmers, however, say they are struggling to access reliable buyers and timely harvesting services. Some report that mature sugarcane remains unharvested for months, reducing quality and causing financial losses.
The closure of weighbridges in parts of Busoga has further worsened the situation, disrupting measurement, transport coordination, and market access.
In Namayingo district, farmers continue to question the delayed licensing of CN Sugar Factory.
“We wonder why the factory, which had been licensed, has not started. Who is behind this move?” they said.
The Uganda Sugar Board, which regulates licensing and operations, acknowledges the pressure to balance industry expansion with sustainability.
Board member Isa Budhugo confirmed that the licensing process for four pending factories, including CN Sugar, has progressed through required stages.
A compliance and legality report is scheduled for presentation to the board committee on March 13.
Budhugo noted that expansion should prioritize factories that add value to sugarcane rather than those using it merely as raw material, stressing the need to avoid worsening existing supply shortages or threatening food security.
He also urged millers to renew support for farmers through outgrower programs and agricultural assistance, historically important in stabilizing cane supply in the region.
Legal and constitutional expert Professor Isaac Christopher Lubogo warned that without proper planning, coordination, and regulation, both farmers and millers risk significant financial losses.
He explained that licensing decisions must balance the rights of existing investors with the interests of new entrants and farmers.
“The 25-kilometre distance guideline from the 2010 National Sugar Policy is an important regulatory framework. Although not explicitly codified in the Sugar Act, it guides the Uganda Sugar Board in licensing decisions, particularly on location, accessibility, and sustainability,” Lubogo said.
He added that ignoring established policy could make licensing decisions unlawful or open to legal challenge.
“Would one argue that existing millers have rights that must be protected before licensing new millers? Yes. Both statutory and constitutional principles support protecting legitimate expectations within established investment.”
As licensing decisions remain pending and tensions between farmers and millers continue, the future of Busoga’s sugar industry hangs in the balance.
Stakeholders await regulatory determinations that will shape whether the region moves toward further expansion or focuses on stabilizing existing investments to secure the long-term sustainability of Uganda’s sugar belt.