Relief As Museveni Backs Sugarcane Farmers, Abolishes Controversial ‘Trash Levy’

By Our Reporter

Speaking during a campaign stop in Mayuge District, President Yoweri Museveni addressed long-standing tensions within Uganda’s sugar industry, issuing his strongest directive yet in favour of outgrowers who have for years demanded greater transparency in the weighing and pricing of sugarcane.

In a decisive statement, President Museveni instructed sugar millers to accept independently operated farmer weighbridges, ending years of controversy surrounding weight determination and the contentious 5% “trash levy” imposed by factories.

The President’s remarks mark a major shift in a sector that contributes more than Shs 500 billion in taxes annually, employs over 100,000 people, and supports the livelihoods of more than six million Ugandans.

For years, growers have accused millers of under-declaring cane weight at factory weighbridges and imposing a 5% deduction for “trash” a deduction farmers argue was unjustified because the same by-products were being used profitably to generate electricity, ethanol, and paper products.

By ordering factories to recognize farmer-owned weighbridges, President Museveni has reopened a debate that has shaped power dynamics within the industry for over a decade.

The dispute has been particularly pronounced in regions such as Busoga and Bunyoro, where new entrants like Victoria Sugar have supported community weighbridges, while older, more established millers such as Kinyara Sugar Ltd have argued that such stations enable theft and distort supply patterns.

At the height of the conflict, some community weighbridges were shut down through ministerial directives, trucks were impounded, and police were deployed. Growers resisted the shutdowns, eventually prompting investigations and the lifting of the ban.

Stakeholders say the battle over weighbridges has long been influenced by political networks, with some local leaders and legislators accused of quietly supporting millers with strong regional influence. Previous attempts to reform the Sugar Act were also weakened during parliamentary debates, allegedly to preserve factory-dominated pricing systems.

The recent decision by former Speaker Rebecca Kadaga to raise farmers’ concerns directly before the President has been described by insiders as a turning point that circumvented established political bottlenecks.

A new Sugar Industry Stakeholders Council was recently sworn in to regulate the industry, mediate disputes, and advance sector reforms. However, questions remain regarding its independence and whether it will enforce the President’s directive, eliminate the trash levy, and protect community weighbridges.

Growers have already expressed concerns that the Council may be influenced by millers if its composition is not carefully scrutinized.

If fully enforced, President Museveni’s directive could fundamentally reshape the sector:

• Independent weighing would reduce disputes and improve transparency.
• The 5% trash levy would be abolished, increasing farmer earnings.
• Millers would lose monopoly control over price determination.
• Community weighbridges would gain legal and operational protection.
• Market integration across the EAC would strengthen Uganda’s export competitiveness.

Uganda currently produces more than 700,000 tonnes of sugar annually, exporting about 250,000 tonnes to regional markets.

While addressing the sugar sector, President Museveni emphasized that Uganda’s prosperity is tied to a unified East African market and coordinated regional security strategies. He urged EALA to fast-track measures that eliminate non-tariff barriers and strengthen regional value chains, noting that a larger, stable market is essential for industrialization.

Despite the President’s firm directive, growers remain cautiously optimistic. Industry insiders say resistance from powerful manufacturers is likely, and the effectiveness of the reforms will depend heavily on enforcement.

For many farmers, the coming months will determine whether the President’s announcement marks a genuine realignment of power within the sugar industry or simply another promise made in a season of political activity.