Government has conceded to large sugar manufacturers’ demand to abandon regulating the lucrative sugar industry. The sugar sub-sector industry players also exerted pressure on the Ministry of Trade to delete provisions in the approved Sugar Bill that would determine the price of sugar, warning that if their demands are not met, they will fight to the last man. Cabinet approved the Sugar Bill, which spells out conditions for registration and licensing of sugar producers to ensure quality and high production standards. The proposed National Sugar Act replaced the Sugar Control Act.However, in a  meeting with Trade minister Amelia Kyambadde, the big sugar manufacturers among them; Kakira Sugar, Lugazi Sugar and Kinyara Sugar, represented by their umbrella association - the Uganda Sugar Manufacturers Association, said they were not consulted before Cabinet approved the Sugar Bill.Read more

Government’s proposal to increase taxation on sugar is being met by stiff opposition from the sugar manufacturers and the civil society. In the Excise Duty (amendment) Bill, the government is proposing an increment of taxation on beet sugar and cane from Shs50 to Shs100. This is an increment of about 100 per cent. Beet sugar and cane are some of the inputs used in the sugar production process. The tax will be imposed on each kilogramme of the final product: Sugar. Uganda Sugar Manufacturers Association (USMA) has already written a protest letter to the Uganda Manufacturers Association (UMA) and the Private Sector Foundation Uganda (PSFU) warning that this will have consequences on the costs of production and consumer prices.“We read and we wrote to UMA and PSFU that this will increase the cost of sugar again,” Jim Mwine Kabeho, the chairman USMA told Daily Monitor in a telephone interview. He insisted that the Shs50 additional tax “was very big.” He did not give further details but said: “We have a complaints procedure method and, for now, that is through UMA and PSFU.” Read more

Increased competition in the sugar industry has created a booming sector with sugarcane farmers now reaping more from growing of the cane.Farmers are also optimistic that if the agriculture loan scheme initiated about four years ago is restructured to reach the rural growers, the agriculture sector will grow by leaps towards full commercialisation.There are about six major sugar firms in Uganda. These include Kinyara, Lugazi, Kakira, Kaliro, Mayuge and Sugar and Allied Industries.The former three are all in Busoga region.With one of the fastest growing populations in the world, a rising GDP and growing disposable income in Uganda, the consumption of sugar per head and industry is projected to grow, creating new opportunities for both farmers and investors. Read more