The Government of Uganda has inaugurated the National Sugar Council, a statutory body established under the amended Sugar Act, marking a major milestone in efforts to streamline, regulate, and inject transparency into the country’s multi-billion-shilling sugar industry.
The inauguration ceremony, held on Thursday at the Ministry of Trade, Industry and Cooperatives (MTIC) headquarters in Kampala, was presided over by Hon. Francis Mwebesa, Minister of Trade, Industry and Cooperatives. He was flanked by his deputies — Hon. David Bahati, Minister of State for Industry and Cooperatives, and Gen. Wilson Mbadi Mbasu, Minister of State for Trade (General Duties).
In his remarks, Minister Mwebesa said the establishment of the National Sugar Council ushers in “a new era of sanity, discipline, and equity” in a sector long beset by unregulated competition and monopolistic tendencies.
“This Council has been instituted to bring about order, fairness, and structured growth in an industry that contributes immensely to Uganda’s economy,” Mwebesa said. “Its purpose is to harmonize the interests of all actors — from farmers to millers to policymakers — ensuring that every stakeholder benefits equitably.”
Under its 18 statutory functions, the Council will oversee licensing and expansion of sugar mills, jaggery plants, and by-product factories; develop a Sugar Industry Development Master Plan; and establish a fair cane pricing mechanism to balance benefits between farmers and millers.
The Council will be chaired by Mr. Rajbir Singh Rai, while Isaac Budugo, Chairperson of the Uganda National Sugarcane Growers Association, will represent farmers’ interests.
Uganda’s sugar industry, one of the country’s oldest industrial sectors, dates back to Kakira Sugar Works (1920), followed by Kinyara Sugar Works (1960s) and SCOUL (1988). While these legacy millers laid the foundation for Uganda’s sugar economy, they also dominated the market for decades — creating rigidity, zoning disputes, and delayed payments to growers.
In recent years, however, Victoria Sugar Limited in Luweero has emerged as a reform-driven player, pioneering initiatives such as instant farmer payments, independent weighbridge management, and open cane pricing negotiations. These practices have boosted transparency and farmer confidence, aligning with the reform agenda now championed by the National Sugar Council.
According to Minister Bahati, Uganda currently produces over 700,000 metric tons of sugar annually — 450,000 tons consumed locally and 250,000 exported regionally. The industry directly employs 20,000 Ugandans, supports 150,000 indirectly, and contributes over UGX 500 billion to the national treasury each year, accounting for about 5% of GDP.
“The Council will consolidate these gains and ensure sustainable growth that benefits every player along the value chain,” Bahati affirmed.
As Uganda’s sugar industry transitions into a more transparent and competitive phase, stakeholders believe the new Council will serve as a bridge between regulation and growth — protecting farmers’ interests while promoting industrial expansion.
Minister Mwebesa noted:
“The sugar sector can no longer be a playground of disorder. The National Sugar Council will be the guiding hand to protect farmers, enforce fairness, and drive Uganda’s sugar industry to global competitiveness.”