Why Busoga farmers are yet to see sugar factory 2 years later

Mr Kasaija said Shs135b for the Construction of two sugar factories would be released under a supplementary budget in the Financial Year 2021/2022. The remaining money would be released in the financial year 2022/2023.

However, two years after launching the construction of a sugarcane factory, its takeoff has failed.
The farmers put the government on task to construct a sugar factory to stabilise fluctuating sugarcane prices that forced some of them to slash their plantations.

The farmers contend that sugar factory owners in the region were conniving to lower the prices of sugarcane so that they could maximise profits.

The farmers decided to demand their sugar factory as Plan B to avoid being cheated by privately owned factories.

This forced the government to release Shs6b to Uganda Development Cooperation (UDC) to kick-start the construction works.

The farmers have thus faulted UDC for failing the project because there is nothing done on the ground.

The Chairperson of Greater Busoga Sugarcane Farmers Union, Mr Godfrey Biriwali, said the land for the sugar factory is available in Luuka District but that UDC has not yet implemented the project.

“We have three sites but only one was inspected. They told us they would come back for another two site visits but up to now, nothing is on the ground. UDC is supposed to release the money for the purchase of the land but we have tried to contact them in vain and we have not seen the money,” he said.

Mr Biriwali said the Ministry of Trade had approved the budget for the first phase of the project but no progress has been made since. 

“We had a roadmap that we submitted to the Ministry of Trade and was approved but it has now expired. The government had to send the land valuer but we have not seen any,” he said.

Mr Biriwali said they want a sugar factory that will add value to their sugarcane.
“We want our own factory that will be producing 14 products of sugarcane so that we can benefit from the sugarcane value chain. The factory will be producing products such as sugar, molasses, ethanol, biogas, and manure, among others,” he said.

Mr Biriwali added that all the sugar factories in Busoga are owned by foreign nationals who are earning more profits than the farmers yet the latter invest a lot of money in plantations.

The Executive Director of UDC, Dr Patrick Birungi, said his team would update farmers on the progress of the construction of their factory.

“No farmers have gotten to us but we would love to know the complaints as well,” he said.

The Chairperson of Uganda National Sugarcane Growers Association, Mr Isa Budhugo, attributed the delay in sugar factory construction to disunity among stakeholders.

Mr Budhugo explained that two associations are fighting for the money meant to implement the construction of the factory.

He added that the associations in question include the Busoga Sugarcane Growers’ Cooperative, which he also chairs, and the Greater Busoga Sugarcane Farmers’ Union chaired by Mr Biriwali.

“My association initiated this idea of having our own factory but shortly after, the Greater Busoga association presented itself as the implementers of the project. So, UDC has remained silent on who to give the money,” Mr Budhugo said.

He added that the confusion between the two associations is being fueled by top Busoga stakeholders who he declined to mention.

Mr Budhugo further explained that some of these stakeholders have their land which they want to sell to UDC but failed to agree on which one to take since everyone wants to have their land bought expensively using this money.

“These people I am talking about have land which they want to sell to the association and every time an inspection is being made, there is a disagreement over which one is to take since people have their interests,” Mr Budhugo said.

Mr Budhugo said they wanted this factory for farmers to be constructed very fast so that there wouldn’t be a vacuum for sugar production in case the Indians managing the private factories ran out of business or got out of the country.

The issue of the government’s failure to implement the construction of sugar factories for farmers came at a time when sugar millers under the Uganda Sugar Manufacturers Association in July 2022, petitioned the Ministry of Trade demanding the process of licensing more mills within Busoga Sub-region to be halted saying it causes unstable supply of sugarcane in the area.

Factories in Busoga 

Busoga is home to six major sugarcane processing plants namely; Kakira Sugar Limited (Jinja), Mayuge Sugar Factory (Mayuge), Kamuli Sugar Limited (Kamuli), Kaliro Sugar Limited (Kaliro ), Bugiri Sugar Limited (Bugiri) and the neighboring GM Sugar Factory (Buikwe).