Farmers disagree with Museveni on growing sugarcane

Sugarcane outgrowers have criticised President Museveni’s position that millers should grow their own cane, saying if implemented, it will drive them out of business.

During celebrations to mark 100 years of Sugar Corporation Uganda Limited (Scoul) in Lugazi, Buikwe District, last Saturday, the President encouraged investors to be strategic by growing their sugarcane on a large scale and stopping over-reliance on outgrowers.

"…engaging these smallholders in sugarcane growing is diverting them from solving their problems; the only people who can make money from sugarcane are those of extensive agriculture,” Mr Museveni said.

However, the chairperson of the Uganda Sugarcane Outgrowers Association, Mr Isa Budhugo, said globally, millers largely rely on outgrowers for cane. 

“Internationally, millers are not allowed to grow their sugarcane, even in India. They are only given licences for operating mills. We have acquired loans from banks, so where will we sell our sugarcane when all millers own their plantations?” Mr Budhugo wondered.

The chairperson of Greater Mukono Sugarcane Outgrowers Cooperatives Society Limited, Mr Julius Katerevu, said if the President is advising millers to grow their cane, the farmers should also start adding value to the raw material.

Sugarcane outgrowers supply about 80 percent of the 53,200 tonnes of cane crushed per day to the 16 millers in Uganda, excluding the new sugar mills under construction; Shakit, CN and Kidera.

Mr Katerevu reiterated his earlier call to millers to increase sugarcane prices from the current Shs123,000 to Shs200,000 per tonne.

Farmers continue to suffer low prices for their raw cane amid fluctuating prices that stood at Shs80,000 per tonne in August 2024 and Shs240,000 in December 2023.

Outgrowers have for long been advocating for a share of the by-products from sugarcane, such as electricity, biogas, ethanol, and fertilisers, rather than just the sugar itself.