Uganda plans new sugar act

The government is to introduce a new sugar
control Act with the aim of ensuring sustainable, diversified,
harmonized and competitive sugar subsector.
Speaking in Kampala last week, the Minister of state for
Industry and Technology Dr. James Mutende said the
number of sugar companies in the country has increased
from two to more than 23.
However, the sector has been depending on the colonial Act
which looked at only sugar production leaving out other by-
products.
He said the current Act of the 1938 gives chance to sugar
cane companies to exploits sugar cane out growers
because the price for sugar cane has been determined by
the sugar price on the market yet the same companies are
producing other products out of sugar cane such as power
and Ethanol whose market prices are higher than that of
sugar on the market.
"With the development of technology, sugar works
companies are now generating power which they sell to the
national grid. The same companies are producing ethanol
out of sugar molasses. These by- products have high
market prices compared to sugar. That is why Government
wants to ensure that farmers also benefit from the revenue
generated from the by-products of sugar," he said.
This comes after Cabinet approved the principles for the
new Sugar Control Bill which is going to be drafted by the
trade ministry and then tabled before Parliament.
Uganda sugar manufacturing companies like Kakira sugar
works produces 22MW of power at maximum capacity about
10MW (45.5%)of the generated power generated is used by
the business estates at Kakira and other 12 MW which is
about (54.5%) is sold to the National grid to generate
income to the sugar factory.
Other Sugar companies that are producing power at their
plants include Kinyara sugar works which is currently
generating 14.5MW but by the end of 2015 the sugar plant
will be generating 40MW, Lugazi sugar plant produces 5MW
but fully utilized by the SCOUL group of company
Lastly Kaliro Sugar the new entrant on the Uganda n market
produces 12MW by 2014 3MW is used internally by the
sugar plant and 9MW are sold to the National grid. But
According to the minister the revenues from the power
generation is not shared by the Agro Farmers.