Leaders and sugarcane farmers in Namayingo District have renewed pressure on the Sugar Council to clear CN Sugar Factory for operation, saying the prolonged licensing stalemate has left growers counting heavy losses despite investing millions of shillings in anticipation of a ready market.
Hundreds of residents made the appeal during a meeting with members of the Sugar Council at the CN Sugar premises in Namayingo Town Council on Friday, as officials returned to assess whether the company had fulfilled the requirements necessary to secure an operational licence.
The construction of CN Sugar Factory was officially commissioned on August 9, 2024, by Vice President Rtd. Maj. Jessica Alupo, who was represented at the ceremony by the Third Deputy Prime Minister, Hajjat Rukia Isanga Nakadama.
The commissioning raised expectations among residents and farmers that the investment would create a nearby market for sugarcane, generate employment and stimulate economic activity in Namayingo and surrounding districts. However, the factory has remained unable to commence production following a licensing stalemate and regulatory concerns.
Several farmers told Sugar Council officials that they had expanded sugarcane production after the investor arrived in Namayingo, only to find themselves transporting mature cane to factories in other districts at a high cost.
Aidha Kigada, a sugarcane farmer, said she planted cane in 2022 when construction of the factory was beginning, expecting to supply her produce locally once the plant became operational.
“I planted sugarcane in 2022 when construction of the factory was starting, and it is now mature. But supplying factories far away from Namayingo attracts high transport costs, leaving me with only about Shs20,000 in profit,” Kigada said.
She said farmers had invested their savings and land in sugarcane growing believing the new factory would create a reliable local market and reduce transportation expenses.
Aramanthan Mukose, the LC3 chairperson of Imanyiro Sub-county in neighbouring Mayuge District and a sugarcane grower, said he acquired about 80 acres of land in Namayingo after learning that a sugar factory was being established in the district.
Mukose said his investment has instead turned into a financial burden because the factory he had expected to supply has not been allowed to start operations.
He appealed to the Government and the Sugar Council to resolve the licensing issues, arguing that continued delays are affecting farmers who had already committed substantial resources to cane production.
Another grower, Siraji Dhikusooka, said his approximately 100-acre sugarcane plantation in Banda Sub-county is also suffering because of the cost of transporting cane to factories in Bugiri and Mayuge districts.
Dhikusooka said having an operational factory in Namayingo would significantly reduce transport expenses and enable growers to retain a bigger share of the proceeds from their harvests.
“Taking the sugarcane to a factory here in Namayingo would save us about Shs500,000 in transport costs per tonne. We also have to consider that fuel prices continue to affect transportation costs,” Dhikusooka said.
He urged the Sugar Council not to end its latest visit at inspection and verification, but to make recommendations that would enable the factory to obtain the necessary licence and begin production.
The renewed demands come after Prime Minister Robinah Nabbanja met stakeholders in September and directed the Ministry of Trade, Industry and Cooperatives to immediately address the licensing of CN Sugar Company to enable the factory to commence production.
Namayingo District Chairperson Ronald Sanya also called for a speedy conclusion to the process, saying residents had waited long enough to benefit from the investment.
“I am really tired of these delays. My people need to start reaping from this sugar factory so as to boost their household incomes,” Sanya said.
Sanya said commercial sugarcane growing had previously not been widely embraced by many residents in Namayingo, but the arrival of CN Sugar encouraged farmers to venture into the crop because they anticipated having a factory within the district.
He argued that allowing the factory to operate could provide a closer market for growers while creating employment and other economic opportunities associated with the sugar industry.
However, Sugar Council member Robert Atugonza explained that CN Sugar had previously failed to secure the required clearance because of outstanding issues, including concerns over whether the company had adequate acreage to guarantee its own sugarcane supply.
Atugonza said the Council’s latest inspection would extend to land reportedly acquired by the company in Mayuge and neighbouring Busia District as part of efforts to establish whether the investor has now met the required conditions.
“We are here again this Friday and Saturday to verify whether the land has been acquired in Mayuge District and neighbouring Busia District. We shall then write a report to our chairman, who will forward it to the Ministry of Trade,” Atugonza said.
He further explained that the Sugar Council had previously visited Namayingo on two occasions and prepared reports, but the process encountered objections from neighbouring sugar factories, contributing to delays in issuing an operational licence.
The latest inspection has therefore renewed expectations among Namayingo leaders and cane growers, many of whom say the fate of their investments now depends on whether the regulatory process will finally pave the way for CN Sugar Factory to begin operations.
For the farmers, the issue goes beyond the opening of another industrial plant. They say it is about securing a nearby market for thousands of tonnes of sugarcane already in the fields, cutting transport costs, creating employment and turning years of investment into meaningful household income.
