The Government of Uganda intends to use the new sugarcane subsector Regulatory Impact Assessment (RIA) report to address imbalances that are currently holding back its growth.
Speaking at the national validation workshop of the sugarcane subsector RIA report in Kampala, the First Deputy Prime Minister and Minister for East African Community Affairs Hon. Rabecca Kadaga acknowledged the subsector’s key challenges such as unfair pricing, distorted mill licensing, post-harvest handling losses, and strained farmer-miller relationship as well as adverse impact of climate change.
“I am pleased to inform you that the President is concerned about the inequitable distribution of the sugarcane proceeds,” Kadaga said in a speech read on her behalf by the state minister for Trade Hon David Bahati. “[The President] instructed Ministry of Trade to engage EPRC through RIA to address this persistent issue, particularly inequitable distribution of the proceeds from sugarcane products: the pricing formula, the contractual relationships between millers and farmers that have long hindered the growth and fairness within the subsector.”
The RIA is intended to guide formulation of laws and regulations from an informed point of view
The sugarcane RIA was developed by the EPRC in collaboration with Ministry of Trade, Ministry of Agriculture, and the Cabinet Secretariat. It was funded by the Government of Uganda. A 47-member strong technical committee, comprising of officials from responsible ministries, farmers, millers, transporters, researchers among others scrutinised the current state of the subsector to identify major issues, sub-issues and possible solutions.
While presenting the RIA findings, Dr Swaibu Mbowa, a Senior Research Fellow at EPRC, said the current regulations dealt with symptoms instead of the root causes of issues holding the subsector. “[There was no RIA), which helps to evaluate the costs and benefits of a regulation or policy to guide decision-makers in achieving public policy goals.”
“This step was missed in the formation of the 2010 Sugar Policy and during [the enactment of Sugar Act 2020],” he said.
Report: Sugarcane Production and Food Security in Uganda
The current laws refer to sugar which is but just one of the byproducts of sugarcane. The RIA recommends that any regulation going forward must incorporate all sugarcane products.
Kadaga reaffirmed that, “It is evident that to identify and implement effective solutions, we need a thorough assessment of our processes – the potential impacts – both positive and negative that have been identified in this [RIA] report. I am happy that we have been able to produce the report in which the government will look at implementing the recommendations.”
Participants at the national validation workshop for the Sugarcane RIA report pose for a photo with State Minister for Trade Hon. David Bahati. photo/EPRC
Meanwhile, Minister Bahati praised the growth the subsector has gone in the past four decades despite facing enormous challenges. He noted that sugar production jumped from less than 100,000 metric tons annually in the early 1980s to 600,000 metric tons today.
“The products from sugarcane have also evolved from merely producing sugar for home consumption to industrial sugar, where about 90,000 metric tons are being produced today; other products include alcohol, spirit, and electricity on top of the sector being a great contributor to government revenues and creating wealth.”
Sarah Ssewanyana, the EPRC Executive Director, said going forward, Ministries – Finance, Trade and Agriculture – will work together to draft briefing notes to be presented to the top management of the respective ministries. From there, a cabinet memo will be submitted to the cabinet for consideration.
Participants at the national validation workshop included sugarcane farmers, government officials, cultural leaders, millers, transporters, among others.
Hon Kadaga observed that there was shared commitment to unlock the full potential of the sugarcane subsector by addressing challenges that threaten its long-term sustainability.