Government Sets Sugarcane Price Floor to Shield Farmers from Market Shocks
Kampala, Uganda
The Government of Uganda has introduced a mandatory minimum price for sugarcane, setting the rate at Shs125,000 per metric ton, in a move aimed at stabilizing farmer incomes and restoring confidence in one of the country’s most critical agricultural value chains.
The directive, which takes immediate effect, follows months of complaints from sugarcane farmers—particularly in the Busoga sub-region—who reported being forced to sell their produce at exploitative prices as low as Shs80,000 per ton due to miller dominance and weak enforcement mechanisms.
Officials from the Ministry of Trade and the Ministry of Agriculture say the price floor is part of broader reforms intended to curb price manipulation, ensure fair competition among sugar millers, and protect smallholder farmers who form the backbone of Uganda’s sugar industry.
Under the new framework, millers found purchasing cane below the gazetted price risk penalties, license reviews, and potential suspension. Local governments have also been instructed to actively monitor transactions at weighbridges and milling centers.
Farmer associations welcomed the announcement but warned that implementation—not policy declarations—will determine success. “We have heard promises before. What we need now is enforcement,” said a representative of a Busoga growers’ cooperative.
The sugar sector employs tens of thousands of Ugandans directly and indirectly and plays a key role in rural household incomes, industrial output, and export earnings.
Why It Matters
The sugarcane industry supports entire regional economies. Unstable prices fuel poverty, debt, and land sales among farmers, while consistent pricing strengthens food security, rural employment, and industrial planning.
What to Watch
Whether millers comply with the price floor
Enforcement capacity at district and regional levels
Potential impact on sugar prices for consumers
