President Museveni Throws-Out Sugar Bill

President Museveni of Uganda has rejected a Bill for the sugar industry passed by Parliament.

In explaining his opposition to the proposed legislation the President wrote to the Speaker of Parliament stating, "It is a big mistake to destroy our sugar industry in favour of small parasite new comers and undermine the big historical actors; Kakira, Lugazi and Kinyara"

Among the changes proposed by the Bill was the removal of the zoning policy so as to create an open market in which restrictions over which buyers growers could sell to were lifted.

Under the current arrangements growers are restricted to a 25km radius around each sugar mill. It was proposed on the basis of a report compiled by a Parliamentary committee that is quoted as stating,  "The proposal for the 25km zoning radius of mills would unfairly strengthen existing large scale millers over small scale millers yet there is in existence a standard policy on liberalised economies to promote competitiveness and efficiency." 

However, the President has made clear his opposition to the participation of small-scale producers in the sector and maintained that those of six acres or less should not be able to grow sugar cane. He has recommended that Members of Parliament scrap the no-zoning proposal and prohibit the licensing of small millers before the Bill is returned to the House.