Summary:

• The Sugar Amendment Bill (2023) has stirred mixed reactions, with stakeholders expressing concerns over the proposed Uganda Sugar Industry Stakeholder Council’s funding, composition, and a suggested amendment to the sugarcane pricing formula.

The introduction of the Sugar Amendment Bill (2023) has sparked varied reactions among stakeholders following its recent presentation on the Parliament floor. On December 5, Mr. David Bahati, the Minister of State for Trade, Industry, and Cooperatives, introduced the Bill for its first reading during the plenary session.

Speaker Anita Among subsequently referred the Bill to the Parliamentary Committee on Trade, Industry, and Tourism, directing them to engage in consultations with all stakeholders, including farmers and millers, within a 45-day timeframe. The committee is expected to provide recommendations to the House after a thorough examination.

The primary objective of the Bill is to amend the existing Act by establishing the Uganda Sugar Industry Stakeholder Council. This Council is designed to replace the Sugar Board, which was initially created by the Sugar Act (2020), with the aim of regulating the country’s sugar industry.

The Sugar Board, outlined in Section 13 of the Sugar Act, could not be established due to government policies on rationalization, which limit the formation of statutory bodies. The proposed Council will comprise representatives from various sugar industry stakeholders, including sugarcane growers and millers, with additional representation from the Ministries of Agriculture, Finance, and Trade.

Reactions to the Bill have been mixed. Mr. Isa Budhugo, Chairperson of the Uganda Sugarcane Growers’ Association (USGA), expressed reservations, particularly concerning the Council’s independence. He argues that if the Council is funded by millers, it may not function independently. Mr. Budhugo emphasized the need for full government funding to avoid biased resolutions in favor of millers.

The Bill proposes funding for the Council through a sugar levy imposed on millers, excluding government funding for activities such as extension services, marketing, and research and development. Mr. Budhugo also criticized the composition of the Council, stating that the Chairperson’s appointment by the minister is unfair. He advocates for an Electoral College system where stakeholders appoint the Chairperson on a rotation basis.

Additionally, the Bill aims to amend the formula for determining sugarcane prices, aligning it with international norms. However, farmers, represented by Mr. Budhugo and others, argue that the proposed formula is outdated, violates competitiveness, and is unfair in a market economy. They prefer prices to be determined by market forces.

Mr. Musa Kabugo, a farmer, and Mr. David Mombwe, the General Secretary of the Busoga Outgrowers Association (BSGA), raise concerns about zoning in the new Bill. They argue against the millers’ proposal for a 25-kilometer radius between mills, emphasizing that farmers should have the freedom to seek markets without such restrictions. The issue of zoning has become a contentious point between millers and farmers in the ongoing discussions surrounding the Sugar Amendment Bill.