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By Andrew Irumba Katusabe
Hoima: In what is being hailed as a landmark breakthrough in the long-running sugarcane disputes that have for years divided stakeholders in Bunyoro sub-region, Kinyara Sugar Limited and Victoria Sugar Ltd have signed a Memorandum of Understanding (MoU) aimed at harmonizing trade practices and restoring stability within the sugar sector.
The cooperation agreement was signed by Kinyara Sugar Director Rajbir Singh Rai and Victoria Sugar Ltd Managing Director Jiyani Alpesh following a high-level meeting convened by the outgoing Minister of State for Gender, Labour and Social Development (Youth and Children Affairs), Hon. Balaam Barugahara, at his offices in Kampala on Monday.
The MoU comes at a critical time when tensions between millers, cane traders, and outgrowers in Bunyoro have intensified over allegations of sugarcane poaching, unfair trade practices, and disputes surrounding the use of roadside weighbridges.
For years, the sugar industry in Bunyoro has been characterized by fierce competition among millers scrambling for sugarcane supplies, often resulting in accusations of cane theft, contract breaches, and exploitation of farmers. The conflicts escalated as new players entered a region historically dominated by Kinyara Sugar, one of Uganda’s oldest sugar manufacturers.
When Victoria Sugar entered the market, the company quickly gained popularity among many outgrowers after introducing reforms intended to empower farmers and improve transparency in the sugarcane trade. Among the most notable interventions was supporting outgrowers to acquire roadside weighbridges, enabling farmers to independently verify the weight of their cane before selling to factories.
The initiative was welcomed by many farmers who had long complained about inconsistencies in factory-based weighing systems, with some alleging losses through under-declaration of tonnage.
Victoria sugar also revised cane prices upwards 👆 which rubbed the historical players the hard way.
However, the development also triggered friction within the sector.
Kinyara Sugar has consistently opposed the proliferation of roadside weighbridges, arguing that unregulated weighing points could create distortions in the trade chain and fuel disputes regarding cane ownership and supply arrangements. The disagreement over weighbridges became one of the central flashpoints in the broader sugarcane wars that engulfed parts of Bunyoro.
The rivalry occasionally spilled into public confrontations involving transporters, outgrowers, local leaders, and factory representatives, with accusations and counter-accusations threatening the cohesion of the region’s sugar economy.
Recognizing the growing tensions and the potential economic consequences for thousands of farmers dependent on sugarcane growing, Balaam Barugahara—himself a son of the Bunyoro soil—reportedly undertook behind-the-scenes efforts to reconcile the competing interests.
Sources familiar with the negotiations say the minister engaged both parties over several months in pursuit of a common framework that prioritizes farmers’ welfare, transparency, and peaceful coexistence within the sector.
Speaking after the signing ceremony, Barugahara welcomed the agreement, describing it as a major milestone towards sustainable growth of the sugar industry in the region.
“This is an important step towards the development of the sugar sector. Dialogue, cooperation, and harmony remain key in addressing challenges affecting the sector and farmers in Bunyoro,” Barugahara said.
Under the newly signed MoU, the parties committed themselves to strengthening cooperation, promoting fair trade practices, and jointly addressing the challenge of rampant sugarcane theft that has undermined both millers and outgrowers.
Industry observers say the agreement could mark the beginning of a new chapter for Bunyoro’s sugar economy if implemented in good faith, particularly in restoring investor confidence and protecting farmers from exploitation amid intense competition for cane supplies.
The sugar sector remains one of the leading economic drivers in the Bunyoro sub-region, supporting thousands of households through outgrowing, transportation, casual labour, and ancillary businesses linked to the sugar value chain.
, https://www.spyuganda.com/minister-balaam-brokers-peace-as-kinyara-victoria-sugar-sign-mou/
