End Of Exploitation Era! Relief For Farmers As Gov’t Declares War On Monopoly In Sugar Industry

By Our Reporter

The Government of Uganda has inaugurated the National Sugar Council, a new statutory body tasked with bringing sanity, transparency, and structured growth to the country’s multi-billion-shilling sugar industry. The move marks a major turning point in efforts to reform one of Uganda’s oldest and most influential industrial sectors.

The ceremony, held on Thursday at the Ministry of Trade, Industry and Cooperatives headquarters in Kampala, was presided over by Hon. Francis Mwebesa, the Cabinet Minister of Trade, Industry and Cooperatives. He was joined by his deputies, Hon. David Bahati (Minister of State for Industry and Cooperatives) and Gen. Wilson Mbadi Mbasu (Minister of State for Trade, General Duties).

Minister Mwebesa described the creation of the Council as a new beginning for the sugar sector, one that will end years of chaos, unfair competition, and unchecked monopolies.

“This Council has been instituted to bring order, fairness, and structured growth in an industry that contributes immensely to Uganda’s economy,” he said. “Our goal is to ensure that every actor from farmers to millers benefits equitably and that the sector remains sustainable for future generations.”

The Council’s 18 statutory functions include reviewing applications for new mills and expansions, regulating jaggery and by-product production, developing a Sugar Industry Development Master Plan, and creating a fair cane pricing mechanism. It will also mediate long-standing disputes between farmers and millers over revenue sharing and zoning.

The Council is chaired by Mr. Milani Dobaria, General Manager of Kinyara Sugar Limited, with Mr. Isaac Budugo, Chairperson of the Uganda National Sugarcane Growers Association, representing farmers.

A Sector Rooted in History, Ready for Reform

Uganda’s sugar industry has deep historical roots, tracing back over a century to the establishment of Kakira Sugar Works in 1920 by the Madhvani family, followed by Kinyara Sugar Works in the 1960s and SCOUL (Sugar Corporation of Uganda Limited) in 1988 under the Mehta Group. These pioneers built the foundation of Uganda’s sugar economy but also left behind a legacy of concentrated power and recurrent disputes over cane zoning and delayed farmer payments.

In recent years, however, new entrants such as Victoria Sugar Limited in Luweero have begun reshaping the landscape. The company has been hailed for introducing a fairer and more transparent business model that puts farmers first.

Victoria Sugar’s initiatives including instant payments to farmers, farmer-managed weighbridges monitored by the Uganda National Bureau of Standards (UNBS), and open negotiations on cane prices have forced the entire industry to rethink old practices. These reforms align closely with the new Council’s mission to promote fairness and transparency across the sector.

Driving a Multi-Billion-Shilling Economy

Uganda’s sugar industry produces more than 700,000 metric tons annually, according to Minister David Bahati, with 450,000 tons consumed locally and 250,000 tons exported to regional markets. The sector directly employs over 20,000 Ugandans, indirectly supports another 150,000, and contributes approximately UGX 500 billion to the national treasury each year.

“This sector accounts for about five percent of our national GDP,” Bahati said. “The establishment of the National Sugar Council will consolidate these gains and ensure that our industry remains competitive and beneficial to every stakeholder along the value chain.”

For years, Uganda’s sugar industry has grappled with controversies — from zoning wrangles to delayed payments and market distortions. But with the National Sugar Council now in place, government officials and private players alike see a renewed opportunity to build a fairer, more accountable, and globally competitive industry.

As Minister Mwebesa concluded, “The sugar sector can no longer be a playground of disorder. This Council will guide the industry towards transparency, protect farmers’ interests, and position Uganda’s sugar on the global stage.”