Inadequate regulation of the sugarcane sub-sector has led to power imbalance among players involved, leaving mostly farmers not benefiting from the crop and exposed growing regions to food insecurity.
According to the Minister of State for Planning Mr. Amos Lugoloobi, “millers have been regulating the industry and farmers have been at the receiving end of the value chain.”
“I entirely agree that [regulation] is a big missing link. Millers are the ones who buy [sugarcane] and when you buy, there is nothing you throw away. There is no waste in sugarcane. The millers generate energy which they sell to the grid; they produce ethanol and waragi…,” he said, adding that all these things are not reflected in the price paid to the farmer for the sugarcane sold to the miller.
Lugoloobi was speaking at the EPRC 11th Annual Forum on Agriculture and Food Security held in Kampala recently. The forum focused on the sugarcane and food security paradox. At the forum, EPRC shared results of a nationwide study that looked at food security status of cane growing regions. EPRC study findings, presented by senior research fellow Dr. Madina Guloba, showed that sugarcane growing regions still suffer food insecurity. However, non-cane grower households were found to be more food insecure compared to cane farmers.
“Even within sugarcane growing households, those with 15 acres land and less were food insecure.”
Minister Amos Lugoloobi (4th from right) takes a group photo with some participants after discussions on sugarcane and food security in Kampala
Minister Lugoloobi said sugarcane was a very important enterprise but faces a lot of distortions. “The income that goes to the people who produce cane has been so low until recently when the global prices pushed it up. There is a lot of volatility. It is very difficult to predict, and this requires proper regulation.”
EPRC assessments have shown broken relationship between farmers and millers in the sub-sector. Also, laws – the Sugar Act 2020 and the 2010 Sugar Policy – have not translated into a better regulated sub-sector.
See report: Revisiting Institutional Arrangements Affecting Sugarcane Out growers and Millers in Uganda
EPRC Executive Director Dr. Sarah N. Ssewanyana said the sugarcane-food security nexus remained contentious with development literature and debates mixed on this matter.
“There are those who argue that sugarcane growing improve the general well-being of the household as well as providing employment to the community where it is being sold. Others argue it impacts food security. This required a sober assessment,” she said. “Households can ensure food security through their own production, or they can be able to earn income and spend it on buying food in the market or in kind.”
EPRC Executive Director Dr. Sarah Ssewanyana
She said that while EPRC’s focus was on how sugarcane impacts food security, there were lessons for the entire public investment management for agro-industrialisation programme as well as lessons for the Uganda’s overall food security agenda.
“How best can we continue promoting agro-industrialization at the same time ensure that food security for all?” she wondered.
The Centre, she revealed, is undertaking the sub-sector’s Regulatory Impact Assessment (RIA) which will help inform government’s steps to regulate the sub-sector.
Nana Gabriel, FAO Uganda policy officer who represented the country director, noted there were still about 10 million people in this country who suffer from food and nutritional security. Also, a third of children suffering from malnutrition.
“At FAO, we continue our commitment to support the government implement a holistic food system approach which includes better production and better nutrition. To ensure food security, all hands are supposed to be on the deck,” he said.