What's happened
Ugandan authorities have mandated a minimum sugarcane price of Shs125,000 per tonne for the next two months following a meeting with millers and government officials. The move aims to stabilize farmer incomes amid complaints of low and unpredictable prices, though farmers argue the rate remains below production costs. The review is part of ongoing efforts to ensure sector stability.
What's behind the headline?
The government’s intervention reflects a strategic effort to balance sector stability with legal compliance. By setting a temporary minimum price, authorities aim to prevent social unrest and secure farmer livelihoods during a politically sensitive period. However, farmers’ concerns about the rate covering production costs suggest that the law’s formula may not be fully effective in practice. The differing operational costs among millers complicate uniform pricing, risking continued sector volatility. The move to review input costs, especially fertilisers, indicates a recognition that structural issues must be addressed for long-term sustainability. This intervention will likely lead to increased compliance in the short term, but without addressing underlying cost disparities, sector stability remains fragile. The political timing—during an election period—underscores the government’s focus on social stability, potentially at the expense of economic efficiency.
What the papers say
The articles from All Africa provide detailed accounts of the recent high-level meetings and government actions, emphasizing the legal and political context. They highlight the government’s stance that the sugar sector is vital for regional stability and development, with officials urging millers to comply with the new minimum price. Contrasting opinions from farmers, such as Isa Budhugo, reveal ongoing dissatisfaction, as they argue the set price does not cover production costs, risking long-term sector health. The coverage from Nile Post underscores the political timing and the government’s efforts to prevent unrest during elections. Overall, the sources collectively portray a sector under pressure, with government measures aimed at immediate stabilization but facing challenges from operational disparities and farmer concerns.
How we got here
The Ugandan government has been addressing concerns from sugarcane farmers about low prices and sector instability. Recent complaints highlighted that some farmers receive as little as Shs90,000 per tonne, well below the legal formula. The government intervened after high-level meetings involving the Ministry of Trade, Industry and Cooperatives, the Sugar Industry Stakeholders Council, and major millers, to enforce a temporary minimum price and review the sector’s pricing mechanisms. This follows the passage of the Sugar Amendment Act, 2025, which provides a legal framework for transparent pricing.
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