President Yoweri Kaguta Museveni has announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers, fulfilling a longstanding pledge to establish a sugarcane processing plant in the region.
The President made the announcement while meeting sugarcane growers, millers, and manufacturers from across Uganda at Kityerera State Lodge in Mayuge District. Farmers unanimously endorsed the government’s plan to enter into purchase negotiations with the factory.
“I pledged to build a sugar factory for you. Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?” President Museveni asked, receiving a resounding “Yes!” from the farmers. “Okay, we shall negotiate with them and buy it for you,” he assured.
The new ownership model is expected to ensure fair returns for farmers and strengthen the sugar industry’s value chain, with profits directly benefiting growers.
Cabinet to Decide Fate of Closed Sugar Factories
During the meeting, the President revealed that Cabinet will decide the fate of CN Sugar Ltd and Shakti Sugar Ltd both closed due to operational issues in its upcoming sitting. He also directed the Minister for Trade, Industry and Cooperatives, Hon. Francis Mwebesa, to ensure the long-awaited Sugar Council is constituted in line with the Sugarcane (Amendment) Act, 2023.
The Council, to be established next week, will regulate the industry and represent both growers and millers. It will include a chairperson, four representatives of sugarcane out-growers, four from sugar millers, and Permanent Secretaries from the Ministries of Agriculture, Finance, and Trade.
Farmers’ Concerns Addressed
Uganda National Association of Sugarcane Growers Chairperson, Mr. Budugo Isa, raised concerns over the continued 5% levy deducted from farmers despite provisions in the new law to scrap it. President Museveni immediately directed that the charge be stopped and urged millers to reject deliveries of unclean sugarcane containing husks and tops, which reduce processing efficiency.
“Reject the unclean sugarcane. And the 5% charge must stop,” the President stated. Minister Mwebesa pledged to issue new regulations in line with the directive and announced that government has secured funds to compensate suppliers of the Atiak Sugar Factory.
Advice on Viable Farming Practices
In a detailed economic analysis, President Museveni advised that sugarcane farming should be undertaken by those with large land holdings, noting that the average return of UGX 4 million per acre annually is insufficient for smallholders.
He encouraged small farmers to adopt the “four-acre model,” combining food crops, coffee, pasture, livestock, poultry, fish farming, or piggery for higher returns. He cited examples of farmers like Joseph Ijara of Serere, earning over UGX 1 billion annually from poultry and dairy farming on just 2.5 acres, and Nyakana, who earns UGX 108 million a year from egg production.
On cotton farming, Museveni noted that it is viable only for large-scale producers, such as institutions with 1,000 acres or more, to supply the textile industry.
To boost sugarcane productivity, the President pledged a revolving fund for farmers to buy fertilizers. Mr. Budugo welcomed the initiative, thanking the President for promising factory acquisition, fertilizers, tractors, and halting the destruction of sugarcane tops, which are used as animal feed.
Political and Community Support
Third Deputy Prime Minister, Rt. Hon. Rukia Nakadama Isanga, assured President Museveni of Busoga’s support in the 2026 elections, noting that locals want to lead his campaign themselves. Hajji Idi Isabirye, Bunya South MP and Chairperson of the Busoga Parliamentary Caucus, commended the President for addressing challenges such as sugarcane pricing and swamp reclamation.
The event was attended by senior government officials, Members of Parliament, and community leaders.
