A look into the rising Sugar prices in Uganda!

I commissioned a state-of-the-art ethanol distillery at Kakira Sugar Factory in Jinja today (Museveni, 23rd January 2017)

There are various of reasons for the rising prices of Sugar and processed sugar in Uganda. This isn’t the first time or last cycle of inflation on the prices of this common commodity. Sugar is common in Uganda for concept of having in it in the chai or the milk tea. To sweeten the milk and the black tea the Ugandans drink. Therefore, the Ugandans are needing and using lots of it on daily basis. It isn’t a luxurious goods, but a daily usage, for ordinary use. It has become staple and is staple together with matooke, cassava, rice and maize flour. This is all seemed as basic for the Ugandan people. Sugar is something very important. Therefore, the rising prices says something is out balance.

The balance have now been lost a year after the election. The prices of goods and food was also rising in 2011, therefore, the Republic had the Walk 2 Work demonstrations. These was demonstrations against the rising food prices, which also meant the sugar at that time went up. The same is happening now. With also on alternative exception, that the producers are not only creating sugar for consumption anymore, but ethanol and bio-fuel. Therefore, the produce and profits are going to export bio-fuel and other products, instead of the sugar that the consumers in Uganda uses. This also is an explanation for the rising prices, as well the added exports to Kenya, where the producers gain more selling it there. Than in Uganda, take a look!

In April 2017 USMA commented:

Uganda Sugar Manufacturers Association (USMA) says the increase in sugar prices has been prompted by the increase in cost of production and the deprecating shillings against major currencies. The Association’s Chairperson, Jim Kabeho says sugar millers were forced to announce what he called a paltry 4 percent increase on each 50-kilogram bag on ex-factory price. The increase according to Kabeho saw a 50-kilogram bag of sugar trading at one hundred and eighty five thousand shillings up from one hundred and seventy thousand shillings” (…) “Meanwhile a source at the Ministry of Trade Industry and Cooperatives who asked for anonymity says the Ministry suspects that the big players like Kakira could have decided not sell its sugar to the market so as to increase production at the ethanol its ethanol plant. The sources says sugar mills with ethanol plants are finally making money on sugar through on co-generation of power, alcohol and ethanol” (URN, 2017).

In April in Masindi:

Masindi district leaders have risen up against the Masindi district Resident Commissioner, Godfrey Nyakahuma over stopping sugar cane buyers from buying cane from Masindi district. Last week, Nyakahuma launched an operation of impounding trucks of all sugar cane buyers who buy sugar cane from Kinyara sugar limited out growers and over five trucks loaded with cane were impounded by police” (…) “Byaruhanga added that that is a sign indicating that Kinyara sugar Factory has no capacity to crush the available sugar cane adding that since Uganda has a liberalized economy let everyone come and buy the abundant cane available instead of leaving the farmers suffer with the monopoly of Kinyara sugar factory. Amanyire Joshua the former mayor Masindi municipality said that if Kinyara is saying that sugar cane buyers are poachers, Kinyara sugar factory is a smuggler because it is also doing the same. Mary Mujumura the deputy speaker Masindi district blamed Byaruhanga Moses the presidential advisor on political affairs for failing to advise the president on political issues saying that he is not supposed to enter into business matters” (Gucwaki, 2017).

In May 2017:

From last year’s average of Shs 3,000 per kilo of sugar, the price shot to Shs 4,000 early this year and is now hovering over Shs 5,500. A kilo of Kinyara sugar is the cheapest at Shs 5000, while Kakira sugar is selling at 6,000 a kilo. On the shelves, Kakira sugar and Lugazi sugar are scarce compared to Kinyara sugar, which is in plenty. Many dealers have now started hoarding sugar in order to benefit from anticipated price hike in the short term” (URN, 2017).

In May 2017 – Stanbic Statement:

The only category to buck that trend was wholesale & retail, where staff costs rose and employment fell. Average purchasing costs also rose in April, reflecting increased prices for animal feed, food stuffs, raw materials and sugar. Higher cost burdens were passed on to clients, leading to a further increase in output charges” (Stanbic Bank, 2017).

President Museveni praises Kakira Millers:

I would like to thank the Madhvani Group, despite the disappointment by Idi Amin. The family pioneered the production of sugar in Uganda. By 1972 they were producing 70,000 tons but today they have almost tripled the production to 180,000 tons,” he said. The President was today commissioning a state of the art ethanol distillery at Kakira Sugar Limited in Jinja district. The US$36 million facility, which is the largest in the East African Region, will be producing 20 million litres of ethanol annually” (…) “President Museveni pledged to address the issues to regulate the sugar industry but urged the Madhvanis to partner with farmers with large chunks of land for production of sugar-cane, as the cane is not a high value crop. He said people with small land holdings should be left to do intensive farming like the growing of fruits that give high returns. Turning to the issue of prices payable to sugar-cane out-growers, President Museveni advised the buyers and out-growers to sit together and agree on the prices taking into consideration the market prices globally” (Uganda Media Centre, 2017).

Government statement on the 11th May:

Speaking to 256BN on condition of anonymity a government official monitoring the situation said the manufacturers have not increased the factory price, but he conceded that the situation is worrying. “At the factory prices are stable. Why is it that the prices at the retail gate are high. This means that there are some distributors who are using the hiding strategy in order to rob Ugandans. As Government we shall continue monitoring the situation until we come up with the solution” the official said. Affordability of sugar is considered a key barometer of an ordinary person’s well-being and its pricing can take on political dimensions when people cannot have sugar with their tea” (256BusinessNews, 2017).

Putting the price in pespective:

Kakensa Media reported this today: “Today sugar costs 7000/- per kilo. When Museveni came to power in 1986 each kilo was at 4/-(four shillings). Immediately he came to power he said Ugandan shilling had lost value, in 1987 all money was changed, not only changed but two zeros were cut off to give it value on addition to the 30% levied on each shilling. This means on every 100 shillings, you got 70cents. Those who had 100,000/- got 700/-” (Kakensa Media, 12.05.2017).

This is all proof of a systemic malpractice, where both export, together with lacking yields because of drought and also the production of ethanol and bio-fuel. All of this collected together are reasons for the rising prices of sugar. The sugar price goes up because the use of cane for other things than millers producers sugar for consumption, but for other export products. This is all making sure even as the Republic of Uganda has in the past produces to much, it now doesn’t. Since it elaborately uses the sugarcane for other products.

That has made the Madhvani Group rich and their exports of sugarcane products are clearly selling. Now even their basic milled sugar are sold more expensive on the Ugandan market. There are also proven problems by other millers, who either has to much cane like Kinyara Sugar Factor in Masindi. Which is ironical problem, as the Kakira and Lugazi sugar is empty on the shelves, while the sugarcane hoarding Kinyara are still in the shops. But Kakira which is produced by Madhvani Group, we can now understand, since they have bigger operation and is blessed by the President for their industrial production of ethanol and bio-fuel.

Therefore, the are more reasons than just shopkeepers not getting enough stocks. That the rising prices are not only that there is lacking production. It is the system of export and production. Where the cane isn’t only becoming milled sugar for consumption, but for all the expensive industrial exports like bio-fuel and ethanol. This is all good business, but also bad for consumers and citizens who are accustom with decent prices for their sugar. That is not the fact anymore, as the business and millers has found new profitable ways. So that the surplus sugarcane and also the other gains massive profits. This is all good business for the owners of the sugar-millers and sugar industry. The one who feels the pitch is the consumer and the citizens. Who see scarcity of sugar inside the shops and also the inflation of prices on the sugar. Peace.

Reference:

256BusinessNews – ‘Government to issue statement on sugar’ (11.05.2017) link:http://256businessnews.com/government-to-issue-statement-on-sugar/

Gucwaki, Yosam – ‘MASINDI RDC IN TROUBLE OVER STOPPING SUGAR CANE BUYERS’ (28.04.2017) link: http://mknewslink.com/2017/04/28/masindi-rdc-trouble-stopping-sugar-cane-buyers/

Stanbic Bank Uganda – ‘Ugandan economic growth continues at start of second quarter’ (04.05.2017) link: https://www.markiteconomics.com/Survey/PressRelease.mvc/143ca2b8e3d84c79b96aed4885b7337e

URN – ‘Sugar manufacturer’s association explains price hikes’ (14.04.2017) link: https://dispatch.ug/2017/04/14/sugar-manufacturers-association-explains-price-hikes/

URN – ‘Uganda: Sugar Crisis On for Another 2 Years – Manufacturers’ (09.05.2017) link: http://allafrica.com/stories/201705100129.html

Uganda Media Centre – ‘President Praises Madhvani Group’ (05.05.2017) link: https://mediacentre.go.ug/news/president-praises-madhvani-group

Al Jazeera’s interview undress Mzee’s so-called Democracy!

Again, President Yoweri Katuga Museveni tried use the trick of democracy, as the ballots and the Electoral Commission, didn’t cook the numbers like a drunk cafeteria staffer and tried to sell it Michelin Star Restaurant. Mr. President has try to sell it other numb-sculls than me, but I am not his target audience.

Let me address one thing Al-Jazeera did wrong, they called him a five time term President, as off his elections. Certainly, the Media House are forgiven for giving way to the propaganda arm of the Movement and their rewriting of history. But there is decade when he wasn’t elected and postponed elections. Sort of the same trick President Joseph Kabila tries to pull of in Democratic Republic of Congo. Well, that is another story for another day. What Al-Jazeera does is to erase the years between 1986 to 1996. Since he wasn’t elected nor had an election, as the rebel and two time General going in and getting rid of the ones on the throne. That is easy to forget as the time past and most of his citizens are born since the 1990s.

Well, before more comments. Look at this interview and the comments of the long-term dictator and ruler of the Republic of Uganda.

Outtake of the Interview:

Museveni: Have you heard of something called democracy? Democracy means you elect the people you like. We had elections about one year ago and my party won 62 percent of the vote. That does not show that the people of Uganda are fed up of our party because they have voted for us five times.

Al Jazeera: According to some reports, you have demanded to be given the right to choose the next leader of Uganda. You were unsuccessful.

Museveni: No. I cannot demand that. The people are there. The people have been electing me, in spite of Al Jazeera.

Al Jazeera: Are you going to run for another term?

Museveni: We follow our Constitution.

Al Jazeera: There are reports that you are about to change the Constitution so that you can run for another term. Is that going to happen?

Museveni: I cannot change the Constitution because I do not have that power.

Al Jazeera: Reports also say that you are now preparing your own son, who is now highly elevated in the army and he’s your special adviser on certain issues. Your wife is also a minister – she sits next to you on the cabinet. Reports are you are preparing one of the two to become the next president of Uganda. What do you say to this?

Museveni: Why should I prepare them? The people of Uganda will choose the one they want.

Al Jazeera: People in your family are very close to you right now, closer than anybody else. There are reports that you are focusing on your own relatives and this is nepotism – giving them higher seats in the government. Isn’t that nepotism, Mr President?

Museveni: That’s not nepotism. The few members of my family that are involved, I involve on their own merit. My wife, against my advice, stood for election and had the biggest majority in the whole country – because the population appreciate what I have done(Talk to Al Jazeera, 2017).

I wonder if President Museveni feels that as a sole candidate and NRM Flag-Bearer for three decades, that he knows there hasn’t been any suggestion of other people running the country. Why are Dr. Kizza Besigye, Dr. Olara Otunnu, Dr. Paul Ssemogerere and Amama Mbabazi never became Presidents after you? Certainly one of them could have been legitimate presidents and de facto leaders as well. Not only you Mr. President of a so-called democracy? But hey, you took the grip of the nation by the gun and never let-go!

He speaks about electing him, if he means he puts up elections and than makes sure rigging it and using the military to spread fear in the villages; than he would be closer to the actual fact. The time when he was popular have gone, as the pictures only today in the villages when Besigye rode around the whole village turned-up to the car of the opposition leader. Something that wouldn’t occur on the watch of the President, as people more fear him and the security forces around him.

That President Museveni speaks of respecting the constitution, he has already pigeon-hold it to fit the paradigm of longevity of himself. If someone we’re up to change the age-limit on the Presidency, it wouldn’t be out of his character to drop of a few suits to the MP’s and have a summit at Kyankwanzi where the subject came and the Movement would celebrate in the progress the party has made. So the use of democracy and constitution is just fronts to look uptight, when the reality is much more bleak.

Let’s be clear if the Ugandans really could choose, it wouldn’t be you, you are already old milk that is not drinkable. The fatigue and disguise of so-called democracy doesn’t work anymore, the gig is up Mr. President. The evidence is right there, on the kangaroo court, the post-election violence and the disappearance of governance from the Central Governance. It is all circled around you and not the institutions of the government. If so there wouldn’t be given food to district who doesn’t need so and the districts getting who needs so are not getting enough. Just as the proof of the food relief in Lira, Abletong and Dokolo this weekend.

The first lady and Minister for Karamoja says she will not be seeking re-election as MP for Ruhama County in the 2016 elections. In a statement to her constituents, Mrs. Museveni said she had reached the decision after a lot of thinking and prayer. She asked that her constituents to understand her and accept her message within grace” (NTV Uganda, 22. May 2015).

So how Mrs. Janet Museveni is on merit and was elected to her role as Minister in his cabinet, is not only violation of her place, but he directly lied to Al-Jazeera, but calling Uganda a Democracy and calling himself elected by the people is a forgery. President Museveni knows it and the world does to. The rigging and the pre-ticked ballots is known by the ones googling away. The history on how he changed the constitution in the past is there too. Not like it is not well known. The ignorant are the ones who doesn’t know.

That President Museveni uses the Flying Squad or Special Forces Command to kill and get of rid of dissidents isn’t a rumor or a mirage, it is mere fact of sadness of overstepping powers. As the ones with detaining dissidents and opposition voices like Stella Nyanzi, but also others. Therefore, keep in mind that Uganda isn’t democratic. That President Museveni is on his 7th Term, not on his 5th that is National Resistance Movement rewriting of history and the world has swallowed it! Peace.

Reference:

Talk to Al Jazeera – ‘Yoweri Museveni: A five times-elected dictator?’ (29.04.2017) link:http://www.aljazeera.com/programmes/talktojazeera/2017/04/yoweri-museveni-times-elected-dictator-170429102326955.html

Apparently, Mzee needs counsel from 163 appointed individuals!

It is just one of these days that the souring networks of brown-enveloped friendly figures in Uganda gets to level that is certainly, only one thing, and one thing only: “Bonkers”. That the Republic of Uganda, has such a giant cabinet already, should be a warning sign, but now with the extended Presidential Advisors, the levels of cronyism, isn’t funny, but a sincere apology to anyone who thought President Yoweri Kaguta Museveni cared about Steady Progress. The progression, apparently, meaning him giving favors and creating jobs for loyalty.

“The move is in keeping with the president’s tradition of shoring up the numbers of his presidential advisors after every election cycle or cabinet reshuffle. However, the request, which would raise the number of presidential advisors from 145 to 163, has met strong opposition from members of Parliament. According to the 2017/18 ministerial policy statement for the Presidency, the appointment of the 18 presidential advisors will push the wage budget for the advisors up by Shs 28.5bn. By the time he was sworn-in last year for his fifth elective presidential term, Museveni had 141 advisors. He drafted in four former ministers who lost the February 2016 elections. The 18 new advisors will be appointed on ministerial terms, joining another 12 who were previously appointed on similar terms” (Kaaya, 2017).

If progression only means massive amount of cronies put into his sphere of influence, than the Republic should be booming. With the patronage and the extended surplus civil servants with portfolios, that does not even know the agencies beneath or the toil of their reach. That the Presidential Advisors are former MPs, former Permanent Secretaries or just people who has an old promise from the old man with the hat. Who knows really?

Certainly, he should be the most enlighten president and the one who should have the most balanced approach to the state, if all of the Presidential Advisors was educated professionals in their respected fields. Well, we know it is not so, or cannot be so, since he has not appointed 145 specialists. Rather it being cronies who are there for their paycheck and their brown envelope before returning home for their daily bread.

President Museveni is either a genius or gone bonkers. Why? Well, if he is wise, than it is because let all of his advisors spit poetry of knowledge into his earholes and that in-depth understand of the subject are understood by the old man, before his decisions are made. I doubt it is so, more like his own arrogance and struggle to find suitable positions for his cronies. He creates more positions instead of building institutions or departments, even agencies who actually are technical and advance. Because why bother? They might undermine the intelligence of the President and his merry counsel.

That President Museveni has no quarrel or any issues concerning this growing amount of advisors is mere a reflection of his patronage and wish to control. Not to listen or gain knowledge, if so the 145 already appointed should or could give the man a moment or two with brilliance. Neither is happening and the status quo, is that this sort is mismanagement and waste of state resources is only to keep the loyal subjects close to Museveni, not to build a better state. Peace.

Reference:

Kaaya, Sadab Kitatta – ‘MPs protest as Museveni asks for more advisors’ (26.04.2017) link: http://observer.ug/news/headlines/52550-mps-protest-as-museveni-asks-for-more-advisors.html

President might re-appoint ministerial appointments rejected by Parliament (Youtube-Clip)

“It has emerged that the president may re-appoint some of the ministers who were dropped by Parliament’s Appointments Committee last week over concerns about their competence. The Government Chief Whip, confirmed the development to NTV’s” (NTV Uganda, 2016).

Uganda: New Cabinet List Out (Youtube-Clip)

Opinion: Museveni’s growing ‘royal’ court

Parliament Uganda

As of today the Executive, the 7th Term of President Yoweri Kaguta Museveni that started now recently after a rigged election. There been selected 31 Ministers, 49 Minster of State and one Vice President. The total amount of honorable Ministers is 80! The one career that is resurrected as he is the ‘Minster for crocodiles’ Maj. Gen. Kahinda Otafiire, the man who lost NRM Primaries this last fall in 2015, and lost again in the General Election in 2016, still he was able to escape and be get brownie points for Mzee.

Hon. Betty Kamya who has defended and attacked Forum for Democratic Change (FDC) and Besigye through her campaign, have been also elevated as she run for the Uganda Federal Alliance (UFA), she took over the Minister for Kampala City after Hon. Frank Tumbewaze who is now the Minister for Information, ICT and Communication, a Ministerial Post; that the now gone MP Gen. Jim Muhwezi.

Chris Baryomunsi Quote Daily Monitor

Well, the good news is that Dr. Chris Baryomusi went to the Ministry of State of Housing, went from Health Care, where he said it wasn’t a big deal with the missing Cobalt 60 Teletheraphy machine at Mulago Hospital and the Uganda Cancer Institute, as the Cancer Patients’ would die anyway… So there is some justice in his demoted state into state minister for Housing… the people who has sickness in Uganda should be giddy, but wished that he was out of Parliament as he was so despicable when the Health Care scandal of Mulago came to light!

Well, then there Hon. Simon Lodoko, who for some reason are Minister of State for Ethics and Integrity… who wanted to sack Dr. Stella Nyanzi after her naked crusade after unethical political motivated in April 2016 from Makerere University.

Al Hajji Abdul Nadduli

And you have the wonderful Al-Hajji Abdul Nadduli, the former NRM Vice-Chairmen for the Central Region, gotten the fantastic Ministerial Post that I hope to have one day in my own country; Minister Without Portefolio. He can chill and get the brown-envelope with Ministerial perks and be a secure vote in Parliament as he is a Minister in the Cabinet. If the man ever wants to do crap, and deliver a petition or notion in parliament, it will be a bonus, but he could just relax in Kabalagala or hang out at the ‘Chicken-In’ at Wandegeya.

Well, will not take on more Minister’s even if there more than in enough the Cabinet, as other die-hards and loyalist Gen. Henry Tukumunde aka Money Man of General Elections, got his corrupt hands into a ministry as well, together with other Musevenism ministers like Hon. Sam Kuteesa, Hon. Matia Kasaija, Hon. Adolf Mwesige, Hon. Irene Muloni, Hon. Dr. Elioda Tumwesigye, Hon. David Bhati, Hon. Sarah Ochient Opendi and Hon. Oryem Okello… that I can mention in haste, without caring for their ministries… 9 ministries and ministers, also the First Lady got a bigger role this time Hon. Janet Museveni, she was tired of the Karamoja and not enough funds to take from Northern Uganda Social Action Fund (NUSAF II)…

museveni and his gun

As for the ministers and amount of them, the Executive are hiring more loyal people around him, he want a giant royal court and be midlevel level, as he wants to be the king on the Iron Throne, with the AK-47 and have whispers from every corner as he wants to control all men of his kingdom. President Museveni, are hiring and hiring men who are loyal to him and men who went as independent, as they lost the NRM Primaries… but he still want them around as they are good people for him and will not sell him out, as long as they are kept fed. Take a look at the numbers!

Museveni currently has 116 advisors in the Office of the President; but the statement suggests this number is to rise to 121 this financial year. This is 39 more than the number of advisors the president had at the beginning of his fourth elective presidential term in 2011” (…)”For instance, after the March 2015 cabinet reshuffle, former Attorney General Peter Nyombi and former Finance, Planning and Economic Development Minister Maria Kiwanuka joined the long list of presidential advisors who are former ministers. Some of the former ministers who are advisors include Gerald Ssendaula, Ham Mulira Mukasa, Ezra Suruma, Namirembe Bitamazire, Beatrice Wabudeya and Gen Salim Saleh. Others are former prime ministers Kintu Musoke and Apolo Nsibambi, former vice president Specioza Wandira Kazibwe, Dr James Makumbi and Muhammed Mayanja who were ministers in the 1990s” (Kaaya, 2016).

This proves that men who are loyal and silent without going into opposition, can expect to get a unelected position by serving President Museveni, as he likes loyalty and knowledge that him paying them keeps them close, as he knows the fellows who are corrupted by him and wants his corrupted behavior gone, will not be close; they will be silenced. The strange news from today was this:

“A further scrutiny of the list also found that former envoys Francis Butagira and Ibrahim Mukiibi are also presidential advisors. Two of the listed 116 advisors such as Hajji Badru Wegulo and Besweri Mulondo are dead” (Kaaya, 2016).

Museveni Kenya Speech 2016

2 men are dead that are currently on the Presidential Advisory list of Uganda, that is explanatory of level of scrutiny the governance of Central government needs, the need for restructure and need for change from the Musevenism that everything circles around him and his visions, as they are now so corrupted and so owned by own personal gain… instead they are now all indebted to Museveni, instead of trying to build better government and ministries that serves the people, the citizens, instead they serve Museveni and wants to be in his court and get his word. That is why they want to be hired, instead of actually making a genuine difference and using the state affairs and state ministries to show accountability for state funds and their pledges. They are instead there all to serve President Museveni, and that is not a healthy functioning state, the government is paying for the bloated ministries, ministers, members of parliament, and all the loyal men that President Museveni keeps in his court, as the numbers of men on the State House Payroll, is also staggering, but that is for another day! This is just the official hiring, not the ones that serving the MPs, Ministries and State Ministers… Peace.

PS: I wonder who eats on the dead-men’s salaries, because surely somebody is catching in on the paychecks of the fallen Museveni soldiers… Think about that for a minute.

ADM 7/168/01 Re – Land for the Sugar Project in Amuru District (11th December 2014, Uganda)

Amuruland