Uganda: SIIMS Centralizes Sugarcane Farmer Registration

• Uganda has launched the Sugar Industry Information Management System (SIIMS) to register all sugarcane farmers and centralize industry data for improved planning and monitoring.
• The SIIMS, developed by the Ministry of Trade, Industry and Cooperatives, aims to address sector challenges like low yields, immature cane harvesting, and poor farmer-miller relations.
• Minister Sanjay Tanna warned sugar millers against purchasing from unregistered growers and underpaying farmers, threatening fines and imprisonment for non-compliance.
• Concerns were raised over millers deducting 5-10% at the factory gate and reducing prices below the agreed UGX 125,000 per tonne.
• Farmers were also cautioned against harvesting immature cane and breaching contracts, with such practices cited as contributing to a 20% national GDP loss.

Minister Tanna explicitly warned that licensed millers found procuring sugarcane from unregistered growers or underpaying farmers could face severe penalties, including fines and imprisonment.

Uganda's government has introduced a new digital platform, the Sugar Industry Information Management System (SIIMS), designed to centralize data and register all sugarcane farmers across the nation. Developed through a collaborative effort between the Ministry of Trade, Industry and Cooperatives (MTIC) and the National Sugar Stakeholders Council, this innovative system aims to significantly enhance planning, monitoring, and overall performance within the vital sugar sector.

The SIIMS was officially unveiled during a series of stakeholder engagement meetings, where representatives from the Sugar Council, sugar millers, and sugarcane farmers were briefed on its impending implementation. Minister of Trade, Industry and Cooperatives, Sanjay Tanna, highlighted that the system will furnish the government with comprehensive insights into the industry. By integrating data from every stage of the sugar value chain—including cane cultivation, harvesting, milling, processing, distribution, and market trends—SIIMS promises a holistic view of the industry's operations. Furthermore, the system leverages satellite technology to precisely identify sugarcane growers, determine acreage under cultivation, and assess the capacity of individual sugar mills, facilitating real-time oversight and rapid response to emerging issues.

The introduction of the Uganda SIIMS sugarcane farmer registration system is a direct response to long-standing challenges plaguing the nation's sugar industry. Minister Tanna emphasized that the new platform is a crucial measure to combat issues such as persistently low sugarcane yields, the premature harvesting of cane, illicit sugarcane poaching, and strained relationships between farmers and millers.

By centralizing data and enabling real-time monitoring, the Sugar Industry Information Management System Uganda is expected to help authorities identify bottlenecks more effectively and implement targeted interventions. This integrated approach is intended to foster a more stable and equitable environment for all participants, from individual sugarcane outgrower registration to large-scale milling operations.

As the government prepares for the full rollout of SIIMS, Minister Tanna issued stern warnings to sugar millers regarding adherence to existing regulations and fair practices. He explicitly cautioned against purchasing sugarcane from unregistered growers and underpaying farmers, stressing that licensed millers must comply with all regulations governing the registration of outgrowers, the accurate weighing of sugarcane, and timely payments to farmers. Breaches of these requirements, the Minister warned, could lead to severe penalties, including substantial fines and imprisonment.

Minister Tanna also raised significant concerns about unauthorized deductions and price reductions affecting farmers. He noted that despite an agreed price of UGX 125,000 per tonne, some millers were unilaterally deducting between five and ten percent at the factory gate, citing various charges. Furthermore, it was reported that certain millers had reduced the price paid to farmers to as low as UGX 90,000, a practice the Minister condemned as unfair and undermining the regulatory framework. Farmers were also advised against harvesting immature cane and violating contracts with millers, with Tanna stating that such actions by unregistered farmers contribute to a 20% loss of the nation's GDP.

Beyond the immediate concerns of farmer registration and fair payments, the Minister underscored the importance of broader regulatory compliance and cooperation within the Uganda sugar sector data system. He highlighted that existing laws already provide clear guidelines for the registration and qualification of outgrowers, as well as specific requirements for the weighing and pricing of sugarcane, urging all parties to respect these provisions.

Minister Tanna also called for enhanced collaboration between industry players and the Ministry of Trade, Industry and Cooperatives concerning permits for sugar imports and exports. He reminded stakeholders that the Sugar Council possesses significant authority, including the power to inspect, issue release orders, and receive monthly returns on all sugar imports and exports, encompassing the repackaging of consignments. This comprehensive oversight aims to ensure transparency and prevent unscrupulous practices from undermining the entire sugar industry.

Ugandan sugar millers and their compliance officers must immediately review their procurement and payment practices to ensure full adherence to new SIIMS registration requirements and existing outgrower regulations, as the Ministry of Trade has signaled increased enforcement and severe penalties (fines, imprisonment) for non-compliance, particularly regarding purchasing from unregistered growers or underpaying farmers.

Source: Original reporting via independent news sources