Museveni to sugar companies: growing own cane to stabilize supply and prices
President Museveni has urged sugarcane companies to grow their own cane to stabilize sugar prices.
According to the President, the current cane shortage is due to the large number of independent growers who have rushed into cane cultivation, leading to overproduction, which has resulted in low demand in East Africa due to trade barriers.
“I told you sugar companies that you should grow your own cane,” Museveni said.
According to the President, a steady supply of cane to sugar companies will result in stable production and prices.
“And stabilization means we’re giving confidence to our buyers,” he said.
He was yesterday meeting with members of the Presidential Advisory Committee on Exports and Industrial Development (PACEID) at his country house in Kisozi, Gomba district.
The president also called on sugar producers to adopt the British American Tobacco (BAT) model of using known and registered or contracted contractors and not just an independent.
“Then it’s your mistake. If you take my formula of a nuclear farm plus registered, contracted and known large or medium-scale contract producers, it will be solved,” Museveni said at the meeting which was also attended by members of Uganda Sugar Manufacturers and Investors Association.
In July, retail sugar prices across the country soared after three of Uganda’s largest factories acknowledged a severe shortage of ripe cane.
At the same meeting, the President instructed the Presidential Advisory Committee on Exports and Industrial Development to discuss with the sugar companies in conjunction with the Ministry of Commerce and Industry to establish a regulatory body that will deal with the issue. quantities and prices of sugar.
“We will now meet with the sugar people and execute the things you have said here,” said Mr. Odrek Rwabwogo, Senior Presidential Adviser for Special Tasks, who also chairs the Presidential Advisory Committee on Trade and Industrial Development.
The Presidential Advisory Committee on Exports and Industrial Development was created in March by the President to address operational bottlenecks that impede trade.
The meeting brought together Mr. Mahmood Nudda, who deals with the export of fruits and vegetables, and Mr. Sean Flanagan of Commodities Partners who wants to buy and export Ugandan sugar. Mr Museveni assured Mr Flanagan of a ready market for Ugandan sugar in the region.
“I can assure you that you can make money here. You should target the domestic market of this huge continent because I am a witness,” the president said.