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Sugar industry of Uganda

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– In 1920, Vithaldas Haridas & Company (VHC) was managed by Muljibhai Madhvani, an Indian-born Ugandan businessman.
– VHC purchased 800 acres of land in Kakira to start a sugar factory.
– The sugar complex opened in 1930, later renamed Kakira Sugar Works.
– In 1924, Sugar Corporation of Uganda Limited (SCOUL) was founded under Nanji Kalidas Mehta.
– SCOUL marked the beginning of the Mehta Group with businesses in Sub-Saharan Africa and India.

**Ownership and Expansion**:
– Kinyara Sugar Works Limited was majority-owned by the Central Government of Uganda until 2011, now owned by Rai Group of Mauritius.
– Atiak Sugar Factory construction began in 2016 with a capacity to crush 1,650 tonnes of raw cane daily.
– Stakeholders of the Madhvani Group agreed to lease land for Amuru Sugar Works in 2017.
– Uganda’s annual sugar output in 2022 exceeded 600,000 metric tonnes.
– Tanzanian officials placed an order for 30,000 metric tonnes of sugar from Uganda in 2020.

**Industrial Sugar Production**:
– Kinyara Sugar started manufacturing industrial sugar for various industries in 2022.
– Other manufacturers of industrial sugar in Uganda include GM Sugar Uganda Limited and Mayuge Sugar Industries Limited.
– National production of white industrial sugar exceeded 120,000 metric tonnes annually.
– Kinyara Sugar increased its production capacity to 75,000 metric tonnes annually in 2023.
– Industrial sugar is used in breweries, soft beverage production, bakeries, and confectioneries.

**Market Impact and Regulatory Measures**:
– Uganda imposes a 25% tariff on refined sugar imports to protect local sugar producers.
– Export restrictions lead to sugar stockpiles, affecting market dynamics.
– Regulatory decisions and government interventions shape the industry’s competitiveness.
– Import restrictions and tariffs on refined sugar imports impact market conditions.
– Efforts are made to support domestic production and regulate the sugar market.

**Production Volume and Industry Growth**:
– Uganda’s raw sugar output expected to rise by 10%, with a potential 17% increase in 2018.
– Top 3 producers likely to boost sugar output by 17%, reflecting a positive trend in the industry.
– Production growth is influenced by export restrictions and government tariff decisions.
– Tariffs on refined sugar imports aim to support local industry growth.
Sugar stockpiles are expected to grow due to export restrictions, shaping the industry’s growth potential.

**Media Coverage and References**:
– Various sources provide historical information and updates on Uganda’s sugar industry.
– Reports cover topics such as sugar price surges, government involvement in sugar factories, and international trade agreements.
– Media discusses the impact of export restrictions, government decisions on tariffs and imports, and the industry’s challenges and opportunities.
– News outlets provide insights into production trends, market dynamics, and the regulatory measures affecting the sugar industry.

Uganda is the largest producer of granular brown sugar in the East African Community, accounting for about 500,000 metric tonnes annually as of May 2017. By 2021, national annual sugar output had increased to about 600,000 metric tonnes of brown sugar and 60,000 metric tonnes of industrial sugar. In October 2022, it was projected that the country would produce 822,000 metric tonnes in calendar year 2022. Of that, about 720,000 metric tonnes would be brown table sugar and about 102,000 metric tonnes would be white industrial sugar.

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