By Ben Musanje
Prime Minister Robinah Nabbanja has directed the Ministry of Trade and Industry to immediately issue a production license to CN Sugar Company to enable it to begin sugar production in Namayingo District.
The directive follows instructions from President Yoweri Museveni for the Prime Minister to intervene and ensure that the company, which was cleared by the government to establish a sugar processing factory in the district in 2022, commences operations.
Nabbanja issued the directive during a meeting at her office in Kampala attended by Minister of State for Trade Sanjay Tanna and Minister of State for Industry David Bahati, as well as representatives of CN Sugar and Bugiri Sugar Company.
CN Sugar proprietors told the meeting that they had invested heavily in the project, including acquiring machinery and mobilizing land for a nucleus estate, but had been unable to commence production because they were still waiting for a license from the Ministry of Trade and Industry.
The company said it had been cleared by the government to establish the factory in 2022 and had since invested significantly in the project. The proprietors said they had also established their own nucleus estate but had waited for about three years for the production license, a delay they said had affected their operations and caused financial losses.
Nabbanja summoned the two ministers to explain the delay in issuing the license.
Tanna explained that the ministry had been implementing a sugar policy requiring millers to have their own nucleus estates and source at least 50 percent of their sugarcane from their own plantations. He said the policy was intended to prevent sugar factories from poaching cane from other millers.
Bahati said the ministry would comply with the Prime Minister’s directive and issue the license while ensuring that CN Sugar operated within existing regulations. He added that measures would be taken to prevent cane poaching in the Busoga sub-region.
After hearing the concerns of the parties involved, Nabbanja directed the ministry to issue the license immediately. She said CN Sugar had met the key requirement of establishing its own plantation and had waited long enough to commence operations. She added that the factory would create employment opportunities for people in the area.
The Namayingo District leadership welcomed the Prime Minister’s intervention, saying the factory would create jobs and provide a market for sugarcane farmers in the district.
The district chairperson Ronald Sanya said Namayingo had been waiting for the factory and that its establishment would address the need for employment while providing farmers with a reliable market for their produce.
However, Bugiri Sugar Company contested the move, raising concerns about competition for sugarcane from its network of out-grower farmers in the Busoga sub-region.
The company said it was not opposed to new investment but wanted conditions attached to CN Sugar’s licence to prevent the new factory from sourcing sugarcane from farmers already registered with Bugiri Sugar. It argued that CN Sugar should rely on its own nucleus estate for cane supplies.
The concerns reflect broader competition among sugar millers in the region over access to sugarcane, particularly from out-grower farmers.
Nabbanja directed the Ministry of Trade and Industry to develop clear guidelines governing cane sourcing and sharing among sugar millers to prevent conflicts in the Busoga sub-region.
The licensing of CN Sugar is expected to pave the way for the company to commence sugar processing operations in Namayingo, subject to compliance with applicable regulatory requirements. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
