Uganda dedicating degraded forest land to Sugar Corp. of Uganda in effort to plant more sugarcane, boost production, president says

LOS ANGELES , August 16, 2011 () – In an effort to plant more sugarcane and boost production, Uganda is planning to dedicate degraded forest land to Sugar Corporation of Uganda Ltd., President Yoweri Museveni said, Dow Jones Newswires reported Aug. 15.

India-based Mehta Group has a majority stake in the country’s third-largest sugar producer, with the government maintaining a minority ownership. Last year, the company had sugar output of 50,000 tonnes.

Uganda is in the midst of a sugar shortage that is being attributed to lacking production from the top three producers amid lower cane output.

In an effort to ease the shortage, the Ugandan government announced last week that it plans to import 40,000 tonnes of duty-free sugar.

The government attempted to allot 3,200 hectares (7907.4 acres) to the company from a forest reserve in 2007, but the decision was met with protests from environmental activists, which led to clashes with police and at least five people dead.

The primary source of this article is Dow Jones Newswires, New York, New York, on Aug. 15, 2011.

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