The Member of Parliament (MP) for Jinja City West, Timothy Batuwa Lusala, has urged the parliamentary sectoral committee to re-examine the amendments in the Sugar (Amendment) Bill 2023. He emphasizes the necessity of establishing a formula that considers multiple sugarcane products and the farmers’ cost of production to ensure fair compensation above the break-even point.
Batuwa highlights two critical defects in the current law, citing the flawed formula that pays farmers based on weight and the failure to account for production costs. According to his analysis, the proposed formula would result in significant losses for sugarcane farmers, with some facing losses of up to Shs 48,210 per ton.
Drawing attention to the economic implications, Batuwa notes the substantial daily losses incurred by sugarcane mills, which exacerbate poverty in regions like Busoga. He warns against enforcing legislation that perpetuates such economic hardship.
The debate surrounding the Sugar (Amendment) Bill 2023 recently faced a setback as the House deferred discussions due to disagreement over funding for the proposed Sugar Council. The council aims to regulate the sector, replacing the dormant Sugar Board established by the Sugar Act, 2020.
The funding proposal for the council triggered a contentious debate among MPs, with some advocating for the reinstatement of the Sugar Board. Concerns were raised about placing farmers at the mercy of millers if the council, funded by miller levies, became the primary regulatory body.
MPs like Aisha Kabanda stressed the importance of government intervention in regulating the sugar industry to protect the interests of sugarcane growers. They argue that funding the Sugar Board would ensure independent oversight, preventing undue influence from millers and safeguarding farmers’ livelihoods.
