President Museveni meets Sugarcane growers and Millers at Mayuge State lodge on 6th Aug 2025
HABARI DAILY I Kampala, Uganda I Sugarcane growers who have been rubbed the wrong way by a 5% levy slapped on their products whener they would deliver them to the factories are celebrating the Presidential Order that scrapped the same.
The farmers aired out their concerns through Isa Budugo, the Chairperson of the Uganda National Association of Sugarcane Growers, who expressed concern over the continued deduction of a 5% levy from farmers delivering sugarcane to factories, a cost management charge that was supposed to be scrapped under the new law.
President Museveni responded firmly, directing that the charge should stop and urged the sugar manufacturers to reject sugarcane deliveries that are mixed with husks and tops, which degrade processing efficiency.
“Can we now agree? Reject the unclean sugarcane,” President Museveni said. “And the 5% charge must stop,” he said while meeting key stakeholders from Uganda’s major sugarcane growing regions — Busoga, Buganda, Western, and Northern Uganda — and is part of his wider agenda to reform the agro-industrial sector and uplift communities from poverty. The meeting was held at Kityerera State Lodge, Mayuge, on Wednesday August 6, 2025.
Sugar Council
Budugo also expressed the farmer’s concern that it has taken long for the Government to establish the long awaited Sugar Council, which was established in accordance with the Sugarcane (Amendment Bill).
Sugarcane growers and millers air out their grievances in a meeting with Museveni
President Museveni directed the Minister for Trade, Industry and Cooperatives, Francis Mwebesa, to ensure the long-awaited) Act, 2023, passed by Parliament in April, 2025. He ordered that the names of the council members should be confirmed by next week.
The council is expected to regulate the industry and represent the interests of growers and millers alike.
The council will consist of a chairperson, four representatives of sugarcane out-growers, four from sugar millers, and Permanent Secretaries from the Ministries of Agriculture, Finance, and Trade.
Mwebesa, who pledged to enact new regulations in line with the President’s directive, also disclosed that the authorities have secured funds to compensate suppliers of the Atiak Sugar Factory, and the payments would be effected next week.
Mayuge’s Purchase
During the same occasion, President Museveni also announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers.
Museveni, who made the announcement while meeting sugarcane growers, millers, added that the move is in fulfilment of the government’s pledge to build a sugarcane processing plant for Busoga sugarcane farmers.
During the meeting, the farmers gave the government a green light to go into purchase negotiations with the sugar factory.
The new ownership model is expected to restore fairness in the sugar industry and ensure that profits return directly to the farmers.
“I pledged to build a sugar factory for you. Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?” President Museveni asked, receiving a resounding “Yes!” from the farmers.
“Okay, we shall negotiate with them and buy it for you,” the President assured them.
He revealed that the cabinet will decide the fate of CN Sugar Ltd and Shakti Sugar limited which were closed due operational issues. He said the issue should be handled next week on Monday.
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