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Sugar factory closure leaves bitter taste for cane growers
The CN Sugar Factory Ltd in Namayingo District. PHOTO/TAUSI NAKATO
What you need to know:
- The farmers were encouraged to plant sugarcane to tap into the new market offered by CN Sugar Factory, but the initiative has become a raw deal.
Sugarcane farmers are stuck with more than 3,000 acres of the cane, following the closure of CN Sugar Factory in Namayingo District.
The chairperson of Namayingo Sugarcane Growers Association, Mr Twaliki Isabirye, said they are stuck with 3,000 acres of sugarcane that they had prepared to supply to CN Sugar Factory.
“The farmers also acquired bank loans to establish their farms and they now face arrest for defaulting on payments,’’ he said at the weekend.
Mr Isabirye, who operates a 150-acre plantation, said it will be very expensive for them to transport their sugarcane to other mills due to high transport costs.
“Most farmers have to hire trucks and incur high transport costs. These expenses will drive them into losses,’’ he said.
The nearby factories are in Mayuge and Bugiri distritcs, which are about 130 kilometres from Namayingo.
Mr Mark Simunyu, another farmer, said he sold his family graveyard to plant sugarcane.
“I have five acres of sugarcane and I had already got licence to supply to Namayingo Sugar Factory, but I am now in a total loss after the factory was closed,’’ he said.
The chairperson of Uganda Sugarcane Growers Association, Mr Isa Budhugo, said many farmers in Busoga Sub-region had grown more sugarcane targeting the new buyer.
“We shall not accept the decision of the Minister to close the factory when we are agitating for more factories in Busoga. The supply of sugarcane is more than the demand which has also caused price fluctuation,’’ he said.
The price of sugarcane has reduced from Shs240,000 in December last year to Shs120,000 per tonne.
On June 17, Trade minister Francis Mwebesa, revoked the licence of CN Sugar Ltd over failure to obtain the required 500 hectares of nucleus estate before erecting the mill and failure to establish a network of sugarcane outgrowers for its sustainability as stipulated in the National Sugar Policy.
The closure of the factory leaves 600 people who were constructing facilities at the site jobless, which has sparked off protests from locals.
However, millers under the Association of Millers Association of Sugarcane, in a June 24 letter addressed to Mr Mwebesa, supported the ministry’s step on revoking the factory’s licence.
“These existing factories are operating at less than half of their capacity due to a shortage of sugarcane. This establishment of additional factories will exacerbate this problem leading to reduced production efficiency and unemployment,’’ part of the letter reads.
The letter further read: “Busoga Sub-region is already saturated with sugar factories contrary to government policy advocating for regional diversification. Other regions such as Tooro have demonstrated potential for factory establishment and should be considered to ensure balanced regional development.’’
Background
Busoga is home to six major sugarcane processing plants namely; Kakira Sugar Limited (Jinja), Mayuge Sugar Factory (Mayuge), Kamuli Sugar Ltd (Kamuli), Kaliro Sugar Ltd (Kaliro), Bugiri Sugar Ltd (Bugiri) ) and the neighboring GM Sugar Factory (Buikwe).
CN Sugar Ltd, which has been the only factory in Namayingo District, is the latest to be closed.
