Uganda Sugarcane Farmers Demand Halt to Shs48 Billion Annual 'Trash' Deductions

Farmers across Uganda are united in their demand for the immediate cessation of a five percent ‘trash’ deduction, a practice they argue is financially crippling and lacks scientific justification. The Uganda National Association of Sugarcane Growers (UNASGO) states that this deduction, intended to account for leaves and tops, results in losses between Shs6,000 and Shs10,000 per tonne of cane supplied, culminating in an estimated annual loss of Shs48 billion for growers nationwide.

UNASGO chairperson Julius Katerevu highlighted that the deduction is not only inconsistent but also penalizes farmers for materials that sugar factories utilize for generating electricity, producing bagasse, and creating fertilizer. “Farmers are not opposed to quality control, but we want a transparent and uniform measurement system,” Katerevu stated, emphasizing that “trash is not waste.”

The core of the dispute lies in the inconsistent implementation of a presidential directive from August 2025, which ordered millers to eliminate the levy. While some mills, particularly in the Bunyoro region, have complied, others, especially in Busoga and Central Uganda, continue to enforce the deduction. This uneven application has led to calls for stricter enforcement and potential escalation at the Uganda Sugar Industry Stakeholders Council.

Growers point out that these deductions compound existing pressures from falling cane prices and rising production costs. Many farmers are reportedly harvesting immature cane due to financial hardship, leading to a decline in both the quality and quantity of sugarcane produced. Concerns are also mounting over increased government excise duty on sugar, with fears that millers might pass these costs onto farmers by further reducing cane prices.

Farmers are urging for not only the immediate stop to the deductions but also for compensation for the monies unfairly taken. They warn that the continued non-compliance and unfair practices could destabilize Uganda’s sugar industry further if not addressed promptly.

Source: Daily Monitor (Uganda)