MP Timothy Batuwa Lusala Calls for Review of Sugar (Amendment) Bill 2023 to Protect Farmers’ Interests

Jinja City West Member of Parliament, Timothy Batuwa Lusala, has urged the parliamentary sectoral committee to re-examine the proposed amendments in the Sugar (Amendment) Bill 2023. Lusala emphasizes the need for a comprehensive formula that takes into account various sugarcane products and the farmers’ cost of production, ensuring fair compensation that exceeds the break-even point.

Highlighting flaws in the existing law, Lusala points out two critical defects hindering its operationalization. He specifically criticizes the formula that determines payments to farmers based on weight, stating that it was hastily implemented without proper testing or benchmarking. Lusala contends that the proposed formula overlooks the crucial factor of production costs, potentially causing financial losses for sugarcane farmers.

Providing a stark example, Lusala reveals that the proposed formula suggests a buying price of Shs 146,790 per ton, while farmers incur a production cost of Shs 195,000 per ton. This disparity, he argues, puts farmers at a significant disadvantage, with potential losses of Shs 48,210 per ton.

Lusala draws attention to the economic implications, citing the daily losses incurred by Kakira Sugar Works Ltd, a major sugar mill, amounting to Shs 289,260,000. He connects these losses to the broader economic challenges, noting that Busoga, where Kakira Sugar Works is located, ranks as the third poorest sub-region in Uganda.

The ongoing debate surrounding the Sugar (Amendment) Bill, 2023 faced a setback as the House deferred discussions on the funding of the proposed Sugar Council, set to regulate the sector if the bill is passed.

The Sugar Act, 2020 established the Sugar Board as the regulatory body, but due to government policy changes, the board has not been formed. The proposed Sugar Council, funded by a sugar levy on millers, sparked a contentious debate among Members of Parliament, with some advocating for the reinstatement of the Sugar Board.

Notably, concerns were raised about the potential imbalance created by funding the council through millers, putting farmers at the mercy of industry players. Hon. Aisha Kabanda (NUP, Butambala District Woman Representative) argued for the importance of government involvement in regulating the sugar industry to safeguard the interests of sugarcane growers.