By Andrew Irumba Katusabe [Sankara]
In abide to streamline the Sugar Industry, Government of Uganda has inaugurated the National Sugar Council, a statutory body established under the amended Sugar Act, marking a strategic milestone in the country’s efforts to harmonize, regulate and inject transparency into its multi-billion-shilling sugar industry.
The ceremony, held on Thursday at the Ministry of Trade, Industry and Cooperatives (MTIC) headquarters in Kampala, was presided over by Hon. Francis Mwebesa, the Cabinet Minister of Trade, Industry and Cooperatives. Mwebesa was flanked by his two deputies — Hon. David Bahati, Minister of State for Industry and cooperatives, and Gen. Wilson Mbadi Mbasu, Minister of State for Trade (General Duties) — who attended in their supportive capacities.
In his keynote remarks, Minister Mwebesa underscored that the establishment of the National Sugar Council signals the beginning of a new era of sanity, discipline, and equity in an industry that has long been fraught with monopolistic practices and unregulated competition.
“This Council has been instituted to bring about order, fairness, and structured growth in an industry that contributes immensely to Uganda’s economy,” Mwebesa declared. “Its purpose is to harmonize the interests of all actors — from farmers to millers to policymakers — ensuring that every stakeholder benefits equitably.”
Under its 18 statutory functions, the newly sworn-in council is mandated to review and approve applications for licensing and expansion of sugar mills, jaggery plants, and by-product factories, as well as develop a Sugar Industry Development Master Plan for government adoption. The Council will also spearhead the formulation of an equitable cane pricing mechanism and ensure fair sharing of proceeds from sugar by-products between farmers and millers — a long-standing pain point in the sector.
The Council will be chaired by Mr.Rajbir Singh Rai, while Isaac Budugo, Chairperson of the Uganda National Sugarcane Growers Association, will be among those to represent the farmers’ interests.
Uganda’s Sugar Industry: From Colonial Roots to Modern Titans
Uganda’s sugar industry is among the country’s oldest industrial sectors, tracing its roots back to Kakira Sugar Works, established in 1920 by the Madhvani family, followed by Kinyara Sugar Works in the early 1960s, and SCOUL – Sugar Corporation of Uganda Limited in 1988 under the Mehta Group. These early industrial giants laid the foundation for Uganda’s sweet economy, but decades of dominance created market rigidity and frequent disputes over cane zoning and delayed payments to growers.
The recent rise of Victoria Sugar Limited in Luweero, however, has injected fresh energy and reformist momentum into the sector. As one of the new-generation entrants, Victoria Sugar has become a symbol of positive disruption, redefining cane trade ethics and rebalancing relations between farmers and millers.
Unlike traditional millers, Victoria Sugar introduced several transformative initiatives that have since reshaped industry practice. These include:
– Instant and transparent payments to farmers, ending the era of delayed remittances that crippled growers’ operations.
– Empowering farmers to own and manage their own weighbridges, supervised by the Uganda National Bureau of Standards (UNBS) — thus curbing manipulation and dependency on factory-based weighbridges controlled by millers.
– Promoting equitable cane pricing through open negotiations and standardized quality assessments.
– Enhancing community partnerships by ensuring local growers have access to fair markets and modern harvesting logistics.
These initiatives have not only boosted farmers’ confidence but also compelled older millers to adapt to a new era of transparency and fairness — a shift perfectly aligned with the mission of the newly established National Sugar Council.
A Multi-Billion-Shilling Sector Powering Uganda’s Economy
According to Minister Bahati, Uganda’s sugar industry now produces over 700,000 metric tons annually, with 450,000 tons consumed domestically and 250,000 exported to regional markets. The sector directly employs over 20,000 Ugandans, indirectly supports 150,000 others, and contributes UGX 500 billion to the national treasury each year.
“This sector contributes about 5% to our national GDP, a remarkable milestone in our industrial transformation,” Bahati noted. “The Council will not only consolidate these gains but also ensure sustainable growth that benefits every participant along the value chain.”
For decades, the sugar industry has been dogged by market distortions, zoning controversies, and dominance by a few entrenched players. But with the establishment of the National Sugar Council, both government and private stakeholders are confident that a new era of accountability, competition, and equity is dawning.
As Minister Mwebesa concluded, “The sugar sector can no longer be a playground of disorder. This Council will be the guiding hand to protect farmers’ interests, ensure transparency, and propel Uganda’s sugar industry to global competitiveness.”
