Joseph Muvawala, Prime Minister of Busoga Kingdom and Executive Director of the National Planning Authority-NPA, calls upon President Yoweri Museveni to personally intervene in stabilizing sugarcane prices during the first Busoga Lukiiko meeting of 2024, emphasizing the necessity for fair pricing, especially during bumper harvest seasons, to ensure substantial profits for farmers.
Muvawala argues that sugarcane, being a vital raw material for various products such as sugar and ethanol, requires an equitable pricing framework to secure substantial profits for farmers. He criticizes the current situation where millers have unilateral power over pricing decisions, noting that Busoga is the largest sugarcane-growing region in the country.
He emphasizes the importance of market competitiveness and fair pricing ratios to ensure farmers benefit adequately from their role as key suppliers to the millers.
Recently, Trade Affairs State Minister David Bahati disclosed in an interview with URN that the new Sugar Amendment Bill includes provisions aimed at developing a sugarcane pricing formula to guarantee decent incomes for farmers commensurate with their investments.
The bill, currently under parliamentary review, has sparked heated debates, particularly among MPs representing sugarcane-producing areas. Deputy Speaker Thomas Tayebwa subsequently referred the matter to the trade committee for thorough assessment before its return to the house.
Bahati underscores the significance of the proposed formula in shielding farmers from the price collapse experienced during the 2018-2021 period, where bumper harvests led to drastically low sugarcane prices.
He notes that this price volatility prompted some farmers to destroy their crops, resulting in scarcity and subsequent price hikes in 2022. Despite the current decline in prices, Muvawala stresses the necessity of a stable pricing formula to ensure generational stability in the sugar industry.
Additionally, Issa Budhugo, Chairperson of the Busoga Sugarcane Growers Cooperative Union, highlights the significant impact of sugarcane on the sub-region’s economic, social, and political landscape.
While acknowledging parliamentary efforts to address the issue, Budhugo urges expedited action, citing the adverse effects of ongoing price drops on farmers’ returns.
Furthermore, the Kyabazinga of Busoga, HRH Gabula Nadiope, encourages subjects to prioritize commercial agriculture as a means of securing both food and income for their households.
