Quality Sugarcane Supply Remains Biggest Challenge Ugandan Outgrowers

Sugarcane production trends show that Uganda’s output has been increasing in recent years, but challenges such as quality still exist. Dr. Ibrahim Okumu while speaking about contract farming in the Ugandan Sugar Industry highlighted some of these challenges. “The challenge for sugar factories is quality supply by out growers. Warnings, fines are issued for non-compliance,” said Okumu a lecturer at School of Economics at Makerere University.


Sugarcane production in Uganda also continues to rotate around the three big players of Kinyara, Kakira and Lugazi that account for 85 percent of production. In areas like Busoga where sugarcane has been grown for longer periods, not much of a difference has been witnessed in the lives of the growers. “The Basoga have over the years grown sugarcane. But they  are still trapped in poverty.  Where is the problem?”asked Okumu. “The Basogas grow sugarcane but it has not taken them out of poverty due to underlying sector pitfalls.” 


The challenge is thus to find a financing model that is optimal for sugarcane growers when cane takes 18 months to grow. This optimal model could involve the use of fertilisers by Ugandan farmers in a country where more than 90 percent of sugarcane growers don’t use them. There is also There is need to develop specific financing products for Agriculture. “Ugandan banks charge monthly interest rates when farmers are not earning,” said Okumu. 

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