Sugar Act

Jurisdiction: Uganda
Instrument: Act or statute
Citation: Chapter 42
Status: Repealed
Version: 31 Dec 2023
Language: en
Official source: View official record ↗

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Source attribution: Source: Uganda Legal Information Institute

Statute overview

About this statute

Provides definitions for terms used in the Act, including Board, by-product of sugar, currency point, grower, industry, jaggery mill, mill, miller, Minister, outgrower, outgrower association, plant, relevant organisation, sugar and sugarcane. Establishes the Uganda Sugar Board as a corporate body with perpetual succession and an official seal and grants it powers to acquire and dispose of property, to sue and be sued, and to perform lawful acts. The Minister appoints the Board members (including a Chairperson from the private sector with sugar industry experience), with consultation rules for miller and outgrower representatives and nomination duties for relevant organisations; the Minister must ensure balance of skills and gender. Rules on tenure, resignation, grounds for removal, and Minister's procedures for members of the Board. The Chairperson and members of the Board shall be paid remuneration as specified in their instruments of appointment.

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Legal text

Provisions of Sugar Act

Showing 21 of 21

Part I

Interpretation

1
Interpretation - Interpretation
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Provides definitions for terms used in the Act, including Board, by-product of sugar, currency point, grower, industry, jaggery mill, mill, miller, Minister, outgrower, outgrower association, plant, relevant organisation, sugar and sugarcane.

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 under any written law as an outgrower association; “ plant ” means a plant to process the by-products of sugarcane ; “ relevant organisation ” means an association or a cooperative society of millers or out growers recognised under the law; “ sugar ” means crystalline or liquid sucrose in any of its recognised commercial forms, intended for human consumption or other uses; “ sugarcane ” means any plant or part of a plant of the genus Saccharum or a hybrid of sugarcane.

Part II

Uganda Sugar Board

2
Uganda Sugar Board - Establishment of Uganda Sugar Board
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Establishes the Uganda Sugar Board as a corporate body with perpetual succession and an official seal and grants it powers to acquire and dispose of property, to sue and be sued, and to perform lawful acts.

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.
3
Uganda Sugar Board - Composition of Board
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The Minister appoints the Board members (including a Chairperson from the private sector with sugar industry experience), with consultation rules for miller and outgrower representatives and nomination duties for relevant organisations; the Minister must ensure balance of skills and gender.

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 of the Minister for appointment as a member of the Board and where there is more than one relevant organisation , the relevant organisations shall agree on the person to be nominated for consideration. Where the relevant organisations fail to agree to a person under subsection (6) , the Minister shall appoint a qualified person from any of the relevant organisations. The Minister shall, in appointing the members of the Board , ensure that there is a balance of skills, gender and in the case of persons referred to in subsection (1)(a) , (e) and (f) ensure that the persons have knowledge and proven experience in the sugar industry .
4
Uganda Sugar Board - Tenure of office of members of Board
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Rules on tenure, resignation, grounds for removal, and Minister's procedures for members of the Board.

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 member, which could have precluded his or her appointment if it had been made available to the Minister , is brought to the attention of the Minister . Where it appears to the Minister that there is cause to remove a member of the Board under subsection (4) , the Minister shall notify the member concerned in writing and shall give the member an opportunity to submit his or her explanation to the Minister . Where a member is removed from office, the Minister may appoint another qualified person from the relevant organisation to replace the member and to hold office for the remainder of the term of the previous member.
5
Uganda Sugar Board - Remuneration of members of Board
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The Chairperson and members of the Board shall be paid remuneration as specified in their instruments of appointment.

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.

Part III

Staff of Board

13
Staff of Board - Executive Director
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The Board must have a full-time Executive Director appointed by the Minister on the Board's recommendation; the Executive Director is responsible for executing Board policies, serves for four years, and may be re-appointed for one further term.

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.
14
Staff of Board - Functions of Executive Director
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The Executive Director is responsible for the Board’s day-to-day operations, implementation of its policies and programmes, management of funds and staff, planning and reporting, and shall be Secretary to the Board; the Executive Director is answerable to the Board, subject to the Act and the Board’s supervision and control.

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 Executive Director is answerable to the Board . The Executive Director shall be the Secretary to the Board .
15
Staff of Board - Staff of Board
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The Board may appoint staff; employees hold office on terms determined by the Board; the Board shall regulate appointment, terms of service and discipline of such staff.

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.

Part IV

Financial matters

16
Financial matters - Funds of Board
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The funds of the Board consist of money appropriated by Parliament for the purposes of the Board.

Section Funds of Board Section The funds of the Board shall consist of money appropriated by Parliament for the purposes of the Board .
17
Financial matters - Duty to operate in accordance with Public Finance Management Act and sound financial principles
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The Board must have due regard to the Public Finance Management Act and sound financial principles when performing its functions under this Act.

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.

Part IX

Miscellaneous

25
Miscellaneous - Quality, safety and health standards of sugar
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The Board must ensure that all sugar produced locally or imported into Uganda meets applicable quality, public health (safety and health) and environmental standards.

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.
26
Miscellaneous - Safeguard measures
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The Government may introduce safeguard measures, subject to regional and international trade agreements.

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.
27
Miscellaneous - Power to amend Schedules
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The Minister may amend Schedule 1, and may amend Schedules 2 and 3, by statutory instrument with Cabinet approval; amendments to Schedules 2 and 3 also require consultation with the Board.

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.
28
Miscellaneous - Regulations
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The Minister may, by statutory instrument and in consultation with the Board, make regulations including to regulate import/export of sugar, prescribe licence forms and applications, and prescribe related fees.

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.

Part V

Licensing of mills and plants

18
Licensing of mills and plants - Licensing of mills and plants
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A person must not establish or operate a sugar mill, commercial jaggery mill or a plant to process sugarcane by-products without a valid licence from the Board; operating without a licence is an offence punishable by fines, and the Board must immediately close non-compliant mills or plants.

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.
19
Licensing of mills and plants - Application for licence to operate mill or plant
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A person who wishes to establish or operate a sugar mill, jaggery mill or plant must apply to the Board for a licence.

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.
20
Licensing of mills and plants - Processing, grant or refusal of licence
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This section sets rules for processing licence applications: the Board must process applications within the minister-prescribed period, consider specified applicant criteria, may not refuse without good cause, must grant when satisfied, must state reasons if refusing, licensees must begin business within three years or have their licence revoked, and aggrieved persons may apply to the Minister for review.

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 under this section does not commence business within three years after the grant of the licence, the Board shall revoke the licence. A person aggrieved by a decision of the Board may apply to the Minister to review the decision.
21
Licensing of mills and plants - Modification of mill or plant
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Licence holders for sugar or jaggery mills must not modify the mill without Board approval; persons who wish to modify must seek the Board's approval.

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.

Part VI

Sugar industry agreements

22
Sugar industry agreements - Sugar industry agreements
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Growers, outgrowers, millers, outgrower associations and other relevant parties must enter into "sugar industry agreements" and the Board must ensure parties perform their duties; disputes about agreement terms are referred to the Board for mediation.

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.

Part VII

Sugarcane pricing

23
Sugarcane pricing - Sugarcane pricing
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Outgrowers and growers are entitled to be paid for their sugarcane according to the formula in Schedule 3 to this Act.

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) .

Part VIII

National Sugar Research Institute

24
National Sugar Research Institute - Establishment of National Sugar Research Institute
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Establishes the National Sugar Research Institute and lists the Institute's functions related to sugarcane breeding, research, technology appraisal, pest and disease monitoring, agronomy, socio-economic studies, equipment testing, technology transfer, sustainability research, collaboration, analysis of samples and training.

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 environmental issues and human safety at field and factory levels; collaborating with the Government, the industry , universities and other national and international organisations for the purpose of furthering the institute’s mission; analysing soil and plant samples for advisory purposes; and offering modular courses on various aspects of sugarcane management and practices.

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