Uganda plans new sugar Act

Dr. James Mutende (L), Minister of State for Industries Addressing the media with Minister of Information, Rose Namayanja

KAMPALA, Uganda - The government is to introduce a new sugar control Act with the aim of ensuring sustainable, diversified, harmonized and competitive sugar subsector.

Speaking in Kampala last week, the Minister of state for Industry and Technology Dr. James Mutende said the number of sugar companies in the country has increased from two to more than 23.

However, the sector has been depending on the colonial Act which looked at only sugar production leaving out other by-products.

He said the current Act of the 1938 gives chance to sugar cane companies to exploits sugar cane out growers because the price for sugar cane has been determined by the sugar price on the market yet the same companies are producing other products out of sugar cane such as power and Ethanol whose market prices are higher than that of sugar on the market.

“With the development of technology, sugar works companies are now generating power which they sell to the national grid. The same companies are producing ethanol out of sugar molasses. These by- products have high market prices compared to sugar. That is why Government wants to ensure that farmers also benefit from the revenue generated from the by-products of sugar,” he said.

This comes after Cabinet approved the principles for the new Sugar Control Bill which is going to be drafted by the trade ministry and then tabled before Parliament.

Uganda sugar manufacturing companies like Kakira sugar works produces 22MW of power at maximum capacity about 10MW (45.5%)of the generated power generated is used by the business estates at Kakira and other 12 MW which is about (54.5%) is sold to the National grid to generate income to the sugar factory.

Other Sugar companies that are producing power at their plants include Kinyara sugar works which is currently generating 14.5MW but by the end of 2015 the sugar plant will be generating 40MW, Lugazi sugar plant produces 5MW but fully utilized by the SCOUL group of company

Lastly Kaliro Sugar the new entrant on the Uganda n market produces 12MW by 2014 3MW is used internally by the sugar plant and 9MW are sold to the National grid. But According to the minister the revenues from the power generation is not shared by the Agro Farmers.

By Samuel Nabwiiso, Friday, September 05th, 2014


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