The Uganda Manufacturers Association (UMA) is urging the government to impose a total ban on the export of unprocessed grains, including maize, sunflower seeds, soybean seeds, and wheat.
John Tusabe, a member of UMA’s tax committee, made this appeal while addressing Parliament’s Finance Committee regarding the External Trade (Amendment) Bill, 2025.
He argued that the proposed export levy of $10 per metric tonne on wheat bran, cotton cake, and maize bran is inadequate and should be replaced with a full ban.
Tusabe explained that the $10 levy converts to just 36 shillings per kilogram, which is too low to create a meaningful impact.
He noted that maize prices have recently surged to 1,400 shillings per kilogram due to hoarding by middlemen and the unregulated export of unprocessed maize, leaving farmers with little benefit from the high market prices.
He warned that manufacturers are struggling to access the raw materials necessary for producing cooking oil and animal feed, causing many factories to remain idle.
Tusabe cited Mukwano Industries in Lira as one company forced to shut down operations due to a shortage of crucial oil seeds such as sunflower and soybeans.
Tusabe emphasized the importance of supporting local industries for sustainable economic growth, advocating for the prioritization of local production to create jobs, increase foreign exchange earnings, and expand the country’s tax base.
Tony Gadhore, a representative from Mukwano Industries Uganda Ltd., also testified before Parliament, revealing that the company has begun importing soybeans from outside Uganda due to the scarcity of local raw materials.
He attributed the shortage to the ongoing export of these resources to neighboring countries.
By Francis Lubega
24th April 2025END
