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Sugarcane farmers from various regions in Uganda are urging for a pricing formula that considers their production costs rather than relying solely on the fluctuating prices of sugar at the factory level. They argue that deriving the formula solely from sugar prices overlooks other valuable by-products of sugarcane, such as ethanol, electricity, and sweets.
Represented by the Uganda Sugarcane Growers Association (USGA), these farmers express concerns that the current pricing formula, as proposed in the recent Sugar Act amendment bill, focuses on gross sugar prices, which they believe can be easily manipulated by millers to the detriment of farmers.
During a press briefing in Jinja City, farmers emphasize that the average cost of producing a tonne of sugarcane is approximately 240,000 Shillings. They advocate for a fair formula that takes into account such production parameters, rather than undermining the efforts of individual farmers.
The farmers highlight the significant drop in sugarcane prices from 250,000 Shillings per tonne last year to an average of 165,000 Shillings per tonne currently. This decline is viewed as financially draining for farmers within the sugar industry, who are also concerned about receiving payments that do not cover their overall investments.
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Lazarus Sayansi, a farmer from Buikwe district, shares that sugarcane prices in their area range between 160,000 and 175,000 Shillings per tonne, resulting in considerable losses for farmers. Such price fluctuations, according to Sayansi, lead to mounting debts as farmers struggle to repay loans with reduced income from sugarcane sales.
Julius Katerevu, chairperson of the Greater Mukono Sugarcane Cooperative Society Limited, proposes amendments to the Sugar Act to discourage millers from owning sugarcane plantations. He believes that if millers rely solely on farmers for raw materials, they will be more inclined to support policies aimed at price stability.
Katerevu explains that many millers use farmers’ sugarcane as backup supplies during periods of deficit, making it challenging for farmers to negotiate fair prices, especially when facing surplus harvests.
Badiru Ssentamu, chairperson of cane farmers in Kayunga district, suggests that millers introduce milling charges if they struggle to offer fair prices to farmers. He proposes a system where farmers can have their cane milled and receive the by-products, which they can then sell at competitive prices in their preferred markets.
In response to these concerns, Aaron Mande, an executive member of the farmers’ association, announces plans to issue a two-week ultimatum to all millers nationwide to address the issue of price drops. Failure to comply may result in a nationwide strike by farmers, halting cane supply to millers across the country.
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