Tom Magumba and Joseph Miti
6 November 2008
Mukono — The dark side of a liberalised economy is starting to emerge with sugar cane out-growers venting their frustrations over lack of harmonised prices. The out-growers want the government to formulate a sugar policy that would control their business.
The farmers expressed their outcry last week during the Uganda National Sugarcane Growers Association (UNASGO) Annual Conference at Ridar Hotel in Seeta where they threatened to abandon the business unless their grievances are addressed. When implemented, the policy would regulate the market, empower farmers to negotiate fair prices and protect the industry currently flooded with contra-brand sugar smuggled from foreign countries and sold at cheaper prices.
Mr Wilberforce Kiwagama, chairman of UNASGO, said while the industry contributed over $132 million (about Shs270billion) to the country's earnings annually, the over 70,000 farmers were earning peanuts for their sweat. "We want the government to treat us like our neighbouring counterparts who have a sugar policy that protects farmers" he said.
He said Ugandan out- growers got 35 per cent of the sugar value compared to 55 and 52 per cent by their counterparts in Tanzania and Kenya respectively. This is the second time sugar cane out-growers are raising this demand at a public forum having made several unsuccessful attempts including filing a petitioned to parliament last year but no action was taken.
The Minister of Agriculture Eng. Hillary Onek pledged to intervene saying the farmers were merely donating their produce. Eng. Onek asked farmers to constitute a committee to draft a document he would use as a policy paper to front their grievances before cabinet. "I realise the need for fair play in your business but promise to put it to all government stakeholders to come up with a lasting solution," he said.
However, Mr Richard Orr, general manager of Kakira Sugar Works said the formula used in paying farmers was created by world monetary agencies such as the World Bank. "Cane prices in the region were determined by the World Bank and other agencies but not millers but this is subject to discussion now," he said.
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