Government Tightens Grip On Sugar Industry with New Regulatory Council

Uganda’s sugar industry, long defined by both its economic promise and internal wrangles, has entered a new chapter following the official inauguration of the National Sugar Council. The move marks a decisive step by the government to restore order, fairness, and transparency in a sector that has too often been marred by monopolies and mistrust between farmers and millers.

At the ceremony held on Thursday at the Ministry of Trade, Industry and Cooperatives in Kampala, Trade Minister Francis Mwebesa described the establishment of the council as a turning point for an industry that contributes significantly to Uganda’s economy yet has for years struggled under the weight of unregulated competition.

He said the council would serve as a bridge between conflicting interests, ensuring that all players likefarmers, millers, and policymakers operate within a structured and transparent framework.

“The formation of this council represents government’s determination to bring sanity and fairness to a sector that touches the lives of millions,” Mwebesa said. “We are building an industry that rewards effort, protects farmers, and promotes value addition.”

The National Sugar Council, which was created under the amended Sugar Act, is tasked with streamlining production, reviewing applications for new mills, and developing a national master plan for the industry. Among its 18 functions, it will also introduce a fair cane pricing model and establish clear guidelines for sharing proceeds from sugar by-products.

The council is chaired by Mr. Milani Dobaria, the General Manager of Kinyara Sugar Limited, while Mr. Isaac Budugo, head of the Uganda National Sugarcane Growers Association, represents the farmers’ voice.

For decades, Uganda’s sugar industry has oscillated between progress and controversy. From the early dominance of Kakira Sugar Works and Kinyara Sugar Limited to the emergence of new players such as Victoria Sugar Limited in Luweero, the sector’s history reflects both growth and conflict. Disputes over cane zoning, pricing manipulation, and delayed payments to farmers have eroded trust, creating the need for stronger regulatory oversight.

Victoria Sugar’s entry into the market in recent years has, however, demonstrated that reform is possible. The company introduced instant payments to growers, promoted independent weighbridges monitored by the Uganda National Bureau of Standards, and encouraged transparent negotiations between farmers and millers. These practices have become models of fairness, influencing government thinking about how the entire industry should evolve.

Minister of State for Industry David Bahati, who attended the inauguration, noted that sugar remains one of Uganda’s most vital industrial pillars. He said the country produces over 700,000 metric tons annually, with nearly two-thirds consumed locally and the remainder exported to regional markets.

The industry employs thousands directly and supports hundreds of thousands more through farming, transportation, and processing. “This sector contributes close to five percent of our national GDP and continues to be a cornerstone of our manufacturing base,” Bahati said. “With the establishment of this council, we are strengthening accountability and ensuring that everyone from the farmer in Busoga to the factory owner in Masindi benefits equitably.”

The creation of the council also reflects government’s growing resolve to break the grip of entrenched monopolies that have long dictated market terms. Industry observers say the council’s success will depend on its ability to balance regulation with innovation, ensuring that new entrants and smallholder farmers are not sidelined by established millers.

Minister Mwebesa emphasized that the era of disorganization in the sugar sector must end, urging both private players and government agencies to embrace transparency and discipline. “The sugar industry can no longer run on personal interests or uncoordinated decisions,” he said. “This council will serve as a guiding hand to align our production, regulate competition, and secure Uganda’s place as a leading sugar producer in the region.”

As the newly inaugurated body begins its work, expectations are high among farmers and millers alike. To many, the council’s establishment signals not only the end of confusion but also the start of a future where fairness, value addition, and shared prosperity define Uganda’s sugar industry once again.