Ugandan government plans to revive Uganda Grain Milling Company (UGMC)
UGMC, originally based in Jinja, was a flagship enterprise of the early NRM government after it came to power in 1986.
UGANDA – The Grain Council of Uganda (TGCU) has welcomed the government’s decision to revive the Uganda Grain Milling Company (UGMC), calling it a timely intervention that will enhance the export of Ugandan grains and pulses.
Mr. Robert Mwanje, chairman of TGCU, stated that the revival of the company as a regulatory body will help the government understand the challenges faced by stakeholders in the grain sector and reduce the export of unprocessed grain.
“We must discourage the export of raw grain, as it results in lost jobs. With the government’s involvement, they will help ensure quality control, guaranteeing that only aflatoxin-free grain is milled and exported,” he added.
Mr. Mwanje made these remarks following the first-ever Grain Millers’ Summit, held last week at the Uganda Manufacturers Association grounds in Lugogo, Kampala.
He pointed out that millers, who are the largest processors of Uganda’s grain, have often been excluded from crucial agricultural value chain discussions, necessitating the formation of this summit.
At the summit, State Minister for Finance in charge of Investment, Evelyn Anite, confirmed that the government would revive UGMC under a new name—the National Commodity Company.
She explained that this initiative is part of broader efforts to organize farmers, improve post-harvest handling, and ensure proper warehousing and grain quality management.
“We export grain worth US$1.1 billion to neighboring countries. This is food that eventually reaches people’s tables. We must ensure that the grain is clean and properly handled. Under the Parish Development Model, funds are earmarked for warehousing, and every region will benefit from modern storage facilities,” said Ms. Anite.
UGMC was widely showcased to visiting heads of state as an example of value-added industrial progress, producing bread, animal feed, wheat, and maize flour, while also storing grain in large silos for national food security.
However, during the wave of liberalization and privatization in the 1990s, UGMC began to decline under controversial management and was eventually sold to the now-defunct Greenland Bank.
It joins a list of former state enterprises—such as Uganda Airlines and Uganda Telecom—that the government has sought to reclaim in recent years.
Maj. Gen. David Kasura, the permanent secretary in the Ministry of Agriculture, confirmed the revival and termed it the wisest decision if Uganda is serious about tapping into the export market.
“Our biggest challenges in exporting grains and pulses have been aggregation, quality assurance, and packaging. With a national company leading the way, we can regulate standards and negotiate better prices in international markets,” said Maj. Gen. Kasura.
He pointed out that farmers often bring only small quantities, such as 15 kg bags, to market, complicating efforts to ensure consistent quality and pricing.
A central, government-led body would streamline the process and enhance Uganda’s competitiveness in the regional and global grain trade.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
