Namayingo Cane Farmers Urge Ministry to Resolve CN Sugar Licence Dispute

What the report says

Sugarcane farmers in Namayingo District are pressing the Ministry of Trade, Industry and Cooperatives to settle a long-running dispute over CN Sugar’s licence, saying the unresolved case has left them with drying cane, higher transport costs and few profitable buyers. The factory was planned for Kifuyo Village, but its licence was revoked and construction stopped, leaving the site idle for about three years, according to the Nile Post report.

The article says the dispute has drawn in the National Sugar Council, which has been visiting Namayingo, Busia and Mayuge to assess the company’s landholdings and other requirements before advising the ministry. CN Sugar’s representatives say the company holds more than 17,000 acres of bare land, with about 8,000 acres already planted with cane. Officials are expected to compile a report on whether the company meets the legal and operational conditions needed to proceed.

Neighbouring sugar companies that objected to the licence say their concern is not with sugar production itself, but with whether CN Sugar followed the proper approval process and distance rules for new factories. They argue the company had not shown enough land or cane development when construction began. Farmers, meanwhile, say selling to other mills is possible but often uneconomical because of transport expenses.

The issue matters because it affects farmer incomes, local investment and the balance of sugar milling capacity in eastern Uganda. Namayingo district leaders have warned that continued inaction could push them to reconsider sugarcane growing in the area, while farmers say they need a clear decision before more of their crop is lost.