Bloomberg News

Nuziveedu Seeds of India Plans Uganda Sugar Production Start

February 13, 2012

Feb. 13 (Bloomberg) -- Nuziveedu Seeds Pvt Ltd., an Indian company that’s the world’s third-largest cotton-seed producer, is exploring plans to start sugar production in Uganda, the nation’s presidency said.

The company plans to form a venture with Sango Bay Estates Ltd., a closely held Ugandan business, in the southwestern district of Rakai to produce the sweetener, the president’s office said by e-mail yesterday from Kampala, the capital.

Clearance for the project is subject to the government completing land surveys to ascertain its size, the presidency said in the statement.

Nuziveedu Seeds is based in the southern Indian state of Andhra Pradesh. Sango Bay produced sugar in Uganda until 1972, when former dictator Idi Amin expelled Asian business owners, Henry Musisi, the operations manager, said today by phone from Kampala. The owners repossessed the company in the late 1990s, he said.

Sugar production by Uganda’s three top planters, which account for more than 98 percent of annual output, may climb 28 percent to 346,000 metric tons this year because of forecasts of good weather, the Uganda Sugar Cane Technologists Association said on Jan. 24.

Encroachers took over part of Sango Bay’s 12,000 acres (4,856 hectares) planned for cane growing and the government is trying to resolve the issue, Musisi said.

Sango Bay planted 800 hectares of seed and is waiting for the government to rid it of encroachers before they embark on cane growing, he said.

--Editors: Ana Monteiro, Vernon Wessels

-0- Feb/13/2012 10:15 GMT

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net


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