Sugar Act

Section Interpretation Section In this Act, unless the context otherwise requires— “ Board ” means the Uganda Sugar Board established under section 2 ; “ by-product of sugar ” means any substance, other than sugar , produced during the process of manufacturing sugar ; “ currency point ” has the value assigned to it in Schedule 1 to this Act; “ grower ” means a person who has a sugarcane farm and has no contract with any miller to supply sugarcane ; “ industry ” means the sugar industry in Uganda and includes the growing of sugarcane and any other sugar producing crop, the manufacturing, refining, marketing and disposal of sugar and the by-products of sugar ; “ jaggery mill ” means rudimentary or bare minimum technology equipment used to crush sugarcane to produce sugarcane juice which is processed through boiling to produce jaggery; “ mill ” means a sugar mill or jaggery mill ; “ miller ” means a person licensed to operate a sugar mill or a jaggery mill ; “ Minister ” means the Minister responsible for trade; “ outgrower ” means a person who has a sugarcane farm and has a contract to supply the sugarcane grown on the farm; “ outgrower association ” means an association registered u...

Section Establishment of Uganda Sugar Board Section The Board shall be a body corporate with perpetual succession and an official seal and may, for the discharge of its functions under this Act— There is established a board to be known as the Uganda Sugar Board . acquire, hold and dispose of movable and immovable property; sue and be sued in its corporate name; and do all acts and things as a body corporate may lawfully do.

Section Composition of Board Section The Board shall comprise of— a Chairperson; the Permanent Secretary of the Ministry responsible for trade or his or her representative; the Permanent Secretary of the Ministry responsible for agriculture or his or her representative; the Permanent Secretary of the Ministry responsible for finance or his or her representative; three representatives of millers; and four representatives of outgrowers. The members of the Board shall be appointed by the Minister . The Chairperson shall be appointed from the private sector and shall be a person with knowledge and experience of the sugar industry . The persons referred to in subsection (1)(e) and (f) shall be appointed by the Minister in consultation with the relevant organisations representing millers and outgrowers. For the avoidance of doubt, a person shall only qualify to be appointed under subsection (1)(e) or (f) if that person is a member of the relevant organisation , and where there is more than one relevant organisation , the person shall belong to at least one relevant organisation . For the purposes of subsection (4) , the relevant organisation shall nominate a person for the consideration...

Section Tenure of office of members of Board Section The Minister may, at any time, remove a member of the Board — A member of the Board not being a Permanent Secretary shall hold office for three years and is eligible for re-appointment for one further term. The Chairperson and members of the Board shall hold office on terms and conditions specified in their instruments of appointment. A member of the Board may, at any time, resign his or her office by letter addressed to the Minister , giving notice of not less than one month. for inability to perform the functions of his or her office arising from infirmity of body or mind; for misbehaviour or misconduct; for incompetence; for absence without prior permission of the Chairperson or without reasonable cause to the satisfaction of the Minister for more than four consecutive meetings of the Board ; for bankruptcy or insolvency; for conviction of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; where the member ceases to belong to the organisation which he or she is appointed to represent; where information relating to the conduct of memb...

Section Remuneration of members of Board Section The Chairperson and the members of the Board shall be paid such remuneration as may be specified in their instruments of appointment.

Section Executive Director Section The Board shall have an Executive Director who shall be a full time employee and who shall be responsible for the execution of the policies of the Board . The Executive Director shall be appointed by the Minister on the recommendation of the Board on such terms and conditions as the Board may determine. The Executive Director shall serve for a period of four years and shall be eligible for re-appointment for one more term.

Section Functions of Executive Director Section Subject to this Act and to the general supervision and control of the Board , the Executive Director is responsible for— The Executive Director is responsible for the day-to-day operations and administration of the Board . the implementation of the policies and programmes of the Board and reporting on them to the Board ; the proper management of the funds and property of the Board ; the organisation and control of the staff of the Board ; the development of an operating plan to guide the Board in achieving its objectives; cooperation with other lead agencies and organisations in matters related to the functions of the board; the development of an economic, efficient and cost effective internal management structure; proposing and implementing the strategic plan, business plan and annual plan of the Board ; ensuring that the policies of the Board are implemented and that the agreed objectives, targets and service standards are met; providing advice as required on all matters within the Board ’s responsibility; and performing any other duty necessary for the implementation of this Act as may be assigned to him or her by the Board . The E...

Section Staff of Board Section The Board may appoint such other staff as may be necessary for the proper and efficient performance of the functions of the Board . The employees appointed under this section shall hold office on such terms and conditions as may be determined by the Board and specified in their instruments of appointment. The Board shall regulate the manner of appointment, terms and conditions of service and the discipline of the staff appointed under this section.

Section Funds of Board Section The funds of the Board shall consist of money appropriated by Parliament for the purposes of the Board .

Section Duty to operate in accordance with Public Finance Management Act and sound financial principles Section In the performance of its functions under this Act, the Board shall have due regard to the provisions of the Public Finance Management Act and to sound financial principles.

Section Quality, safety and health standards of sugar Section The Board shall, in collaboration with the relevant bodies, ensure that all sugar produced locally or imported into Uganda complies with— quality standards as set by the body responsible for setting Standards; the safety and health standards as set by the body responsible for public health; and the environmental standards as set by the body responsible for environmental matters.

Section Safeguard measures Section Subject to regional and international trade agreements to which Uganda is a party, the Government may introduce safeguard measures as may be necessary to protect the industry from unfair trade practices.

Section Power to amend Schedules Section The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act. The Minister may, by statutory instrument, in consultation with the Board , and with approval of Cabinet, amend Schedules 2 and 3 to the Act.

Section Regulations Section Without prejudice to subsection (1) , the Minister may make regulations— The Minister may, by statutory instrument, in consultation with the Board , make regulations to give effect to the provisions of this Act. to regulate and control the exportation and importation of sugar ; prescribing the forms of licences to be issued under this Act and the form and manner of application for licences; prescribing the fees which may be charged for any activity relating and incidental to the development, products, marketing and distribution of sugar and its by-products.

Section Licensing of mills and plants Section A person shall not establish or operate a sugar mill , jaggery mill or a plant to process the by-products of sugarcane without a valid licence granted for that purpose by the Board . A person who establishes or operates a sugar mill or a commercial jaggery mill without a valid licence granted under subsection (1) commits an offence and is liable, on conviction, to a fine not exceeding five thousand currency points for a sugar mill and five hundred currency points for a commercial jaggery. Notwithstanding subsection (2) , a mill or plant established or operated in contravention of this section shall immediately be closed by the Board . The prosecution of a person under this section does not prevent the Board from licensing the person in accordance with this Act.

Section Application for licence to operate mill or plant Section A person who wishes to establish or operate a sugar mill or a jaggery mill or plant shall apply to the Board for a licence for that purpose. The application for a licence shall be in the prescribed form and contain the prescribed particulars. An application shall be accompanied with the prescribed fee. Without limiting the general effect of subsection (2) , an application shall specify the premises and location upon which the milling of sugar , milling of jaggery or processing of sugarcane by-products is proposed to be carried on.

Section Processing, grant or refusal of licence Section In processing an application for a licence, the Board shall have regard to the following— The Board shall, within the period prescribed by the Minister , process an application for a licence. whether the applicant is a fit and proper person; whether the applicant has sufficient knowledge, experience and capacity to enable him or her conduct business or that the applicant has amongst his or her staff, a person with such knowledge and experience; and any other criteria prescribed by the Minister . The Minister shall, by regulations, prescribe the criteria to determine a fit and proper person for the purposes of subsection (2)(a) . The Board shall not, without good cause, refuse to grant an applicant a licence. The Board shall grant a licence where it is satisfied with the information contained in the application and the conditions and requirements prescribed by this Act. Where the Board refuses to grant a licence, the Board shall state in writing the reasons for the refusal. A person granted a licence under this section shall commence business within three years after the grant of the licence. Where a person granted a licence un...

Section Modification of mill or plant Section A holder of a licence in respect of a sugar mill or jaggery mill or plant shall not modify the sugar mill , jaggery mill or plant without approval by the Board . In subsection (1) , “modify” means expanding or reducing the capacity of the mill . A person who wishes to modify a mill shall seek approval of the Board in the prescribed manner and form.

Section Sugar industry agreements Section In order to streamline the management of the sugar industry , growers, outgrowers, millers, outgrower associations and other relevant parties, shall enter into agreements, in this Act referred to as “ sugar industry agreements” which shall set out the respective rights, duties and obligations. The Board shall ensure that every party to a sugar industry agreement performs his or her duties set out in the agreement. A question or dispute relating to a term in a sugar industry agreement shall be referred to the Board for mediation.

Section Sugarcane pricing Section The price of sugarcane shall be determined in accordance with the formula set out in Schedule 3 to this Act. An outgrower or grower shall be paid for his or her sugarcane in accordance with the formula set out in Schedule 3 to this Act but a sugar industry agreement between the parties may provide that an outgrower may be paid a higher price than that provided for in subsection (1) . For the avoidance of doubt, an outgrower or grower shall not be paid a price lower than that calculated under subsection (1) .

Section Establishment of National Sugar Research Institute Section The functions of the Institute established under subsection (1) , are— There shall be established, in accordance with the National Agricultural Research Act, the National Sugar Research Institute. the breeding of sugarcane varieties suited for various agro-ecological zones of Uganda; conducting research on the nutritional requirements of sugarcane in order to provide recommendations on the appropriate fertilisers; appraising technologies on land preparation, drainage and water management for economical cane production; the studying and monitoring of pests and diseases that affect sugarcane and recommending appropriate control strategies; developing agronomic packages for sugarcane maintenance and management; instituting socio-economic investigations to improve human resource management and enhance development of the sugar industry as an agri-business; the testing, designing and evaluating of farm machinery and factory equipment for efficient sugar production; promoting the transfer of sugar technology based on applied research through relevant extension mechanisms; fostering research on sustainable productivity envi...