Uganda bows to big producers’ demand and amends sugar law
Workers at the Kisumu pier in western Kenya wait to offload sugar imported from Uganda. The Ugandan cabinet had approved law to regulate sub-sector and ensure high quality products. PHOTO | FILE
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The sugar sub-sector also exerted pressure on the Ministry of Trade to delete provisions in the approved Sugar Bill that would determine the price of sugar, warning that if their demands are not met they will continue fighting.
Uganda has bowed to large sugar manufacturers’ demand to abandon regulating the lucrative industry.
The sugar sub-sector also exerted pressure on the Ministry of Trade to delete provisions in the approved Sugar Bill that would determine the price of sugar, warning that if their demands are not met they will continue fighting.
The Cabinet, in January 2016, approved the Sugar Bill 2015 which spells out conditions for registration and licensing of sugar producers to ensure quality and high production standards.
Big millers bullies
The proposed National Sugar Act 2015 replaced the Sugar Control Act of 1938.
However, in a recent meeting with Trade minister Amelia Kyambadde, the big sugar manufacturers among them; Kakira Sugar, Lugazi Sugar and Kinyara Sugar, represented by their umbrella association — the Uganda Sugar Manufacturers Association — said they were not consulted before Cabinet approved the Sugar Bill.
They claim some provisions in the proposed law were not in their favour and threatened to fight the Bill once it is tabled before Parliament without their input.
In his submission, chairman of Uganda Sugar Manufacturers Association Jim Kabeho said they do not agree with the provision of establishing a sugar board whose intention is to monitor, and coordinate all activities of the sugar industry.Mr Kabeho argued that having a sugar board would create more problems than solutions.
“The board will instead take long to make decisions,” he said.
“The proposed board of 11 members was given a lot of powers with the Ministry of Trade and Industry playing a spectator’s role.” On the sugar prices, he said the matter should be left to the forces of demand and supply to determine and not any sort of formulae.
Mr Kabehoalso wants a law that will stop competition between big millers and small millers of cane. Milan Dobaria of G.M Sugar and a member of the small millers accused the big millers of being bullies.
He also lashed at the big industry players for stifling their efforts to expand
