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Sugarcane Growers Set Deadline for Millers to Raise Prices

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Sugar Cane Low Prices Uganda
PHOTO — Economic Policy Research Centre


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Sugarcane farmers in Uganda have issued a two-week ultimatum to millers, demanding an increase in the price of raw cane. The current price stands at Shs180,000 per ton, a significant decrease from Shs240,000 in December. Dissatisfied with the decline in prices, farmers convened at a meeting held at Jinja agricultural showground to address their grievances.

Representatives from sugarcane-growing districts unanimously expressed their dissatisfaction with millers’ justifications for the price decrease. Despite claims by millers that surplus imported sugar has saturated the market, resulting in reduced demand for locally grown sugarcane, farmers remain unconvinced.

Isa Budhugo, interim chairperson of the Uganda Sugarcane Growers Association, announced the decision to temporarily halt supplying raw cane to millers. This pause is intended to allow millers to deplete their purported surplus sugar stock, which they argue has led to the price reduction. The suspension of supply is scheduled to commence on March 15, providing millers with an opportunity to address the situation.

During the 15-day hiatus, farmers will engage in discussions with millers to negotiate fair prices for sugarcane. Budhugo emphasized the farmers’ demand for a price of Shs240,000 per ton, reflecting the costs incurred in sugarcane production. This figure exceeds the current market price and aligns more closely with the expenses associated with cultivation.

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Aaron Dickson Mande, general secretary of the Busoga Sugarcane Out Growers Cooperative Union, warned of checkpoints to intercept farmers attempting to deliver sugarcane to factories after the ultimatum expires. The enforcement of these measures aims to ensure compliance with the farmers’ resolution and prevent further exploitation by millers.

Mande highlighted the farmers’ grievances, accusing millers of disregarding the efforts and investments made by sugarcane growers. The lack of consideration for production costs undermines the livelihoods of farmers who rely on sugarcane cultivation as their primary source of income.

Patrick Mudungu, chairperson of the Mayuge Sugarcane Out Growers Association, emphasized that farmers are not seeking confrontation with millers but rather equitable compensation for their labor. The collective action taken by sugarcane farmers underscores the importance of fair trade practices and mutual respect within the agricultural industry.

As the deadline approaches, stakeholders in the sugarcane sector must engage in constructive dialogue to address the underlying issues and reach a mutually beneficial resolution. The livelihoods of thousands of farmers depend on fair pricing and sustainable practices within the sugarcane supply chain.

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