agriculture 30 April 2026 Daily Monitor (Uganda)
Bunyoro and Tooro Sugarcane Farmers Protest New Excise Duty Hike
Sugarcane farmers in Uganda's Bunyoro and Tooro regions have strongly opposed the recent increase in excise duty on sugar from Shs100 to Shs300 per kilogramme, claiming it will slash their cane prices despite targeting processors. They warn of potential production cuts, job losses, and industry instability if the tax isn't reversed. Source: https://www.monitor.co.ug/uganda/news/national/bunyoro-tooro-sugarcane-farmers-reject-new-tax-5441762
Sugarcane growers from Bunyoro and Tooro sub-regions, represented by the Bunyoro Tooro Sugarcane Farmers Association (BUTOS), have voiced fierce opposition to the Excise Duty (Amendment) Act, 2026. The law raises the tax on sugar from Shs100 to Shs300 per kilogramme as part of Parliament’s April 2026 amendments for the 2026/27 financial year.
Farmers in districts like Masindi, Kikuube, Kyenjojo, Kiryandongo, and Hoima argue the levy will be passed on to them via lower cane prices, despite applying to processed sugar. BUTOS Chairperson Patrick Byamukama highlighted existing pressures from 18 percent VAT and warned of reduced output and value chain breakdowns without policy changes.
“Millers will transfer this cost to farmers,” Byamukama stated, announcing plans to petition Parliament’s Speaker for a review. Robert Atugonza, Masindi District Sugarcane Outgrowers Association chair and national stakeholder rep, echoed this, noting nationwide rejection and urging taxes on other sectors instead.
Atugonza threatened supply suspensions to factories, stressing the sector’s role in employment. He also called for tackling millers’ under-declaration of production. Kyenjojo growers’ leader Barwane Batinire pushed for unity, while MASGAL vice chair Phinehans Kyotasobora sought talks with finance and trade ministries.
Farmers further criticized delays in the Sugar Act’s cane pricing formula, demanding it factor in by-products like bagasse, electricity, fertilizers, and spirits for fairer payments.
Source: Daily Monitor (Uganda)