Rédaction Africa Links 24 with Tausi Nakato
Published on 2024-01-31 14:07:16
Sugar millers in Busoga Sub-region have seen a drop in prices for raw cane from farmers over the past seven years. Currently, millers are purchasing raw cane from farmers at prices ranging from Shs175,000 to Shs215,000 per tonne.
The frustration from farmers began in 2017 when millers offered Shs175,000 per tonne, which dropped further to Shs96,000 in 2021, then jumped to Shs240,000 in 2023, only to drop again by Shs65,000.
One farmer, Mr. Godfrey Naitema, expressed dissatisfaction with the price drop, describing it as “unfair” and “unacceptable,” especially as they are servicing loans. The General Secretary of the Busoga Sugarcane Outgrowers Association, Mr. David Christopher Mombwe, also spoke out against the drop in prices, calling it a sign of “exploitation of farmers” by the millers.
Mombwe is advocating for the government to set a minimum price of Shs250,000 per tonne for sugarcane, which he believes would stabilize the price and ensure fair compensation for farmers. He also highlighted that raw cane, though largely used for making sugar, is also utilized by millers in the production of other products like biogas, molasses, and fertilizers.
However, the Chairperson of Uganda Sugarcane Growers Association, Mr. Isa Budhugo, stated that the reduced prices clash with the breakeven point of a sugarcane farmer, with banks likely to confiscate properties if they are paid less than Shs210,000. Budhugo warned that farmers would halt the supply of sugarcane to millers for 30 days to fight for better prices.
On the millers’ side, the Chairperson of Uganda Sugar Manufacturers Association, Mr. Jim Kabeho, attributed the reduction in sugarcane prices to the drop in sugar prices, which he explained was in response to excess sugar being illegally imported from Kenya and low domestic consumption.
In a related development, cane farmers in Masindi District have suspended the supply of sugarcane to Kinyara Sugar Company Limited in response to the company’s unilateral decision to decrease the price for each tonne of supplied sugarcane. The farmers are demanding fair compensation and are holding back supply until further notice.
Read the original article on Uganda Monitor
