Analysis of the Determinants of Price Fluctuations of Sugarcane in Uganda.

Abstract

Sugarcane farming has been practiced the world over since the Persian farmers discovered the “reeds that produced honey without bees” between the 4th and 6th Centuries in India. Since then, sugarcane farming has been practiced in various tropical regions of the world with the major driver of the industry being the world’s increasing demand for sugar. The major purpose of this study was to assess the determinants of sugarcane price fluctuations in Uganda. The study was guided by four specific objectives namely: To establish the effect of high production of sugarcane on its price; to establish the effect of the price of sugar on the price of sugarcane; to establish the relationship between inflation rate and sugarcane prices in Uganda and lastly to establish the effect of interest rates on sugarcane prices sugarcane in Uganda. The study adopted a descriptive research design. The quantitative data was analysed by tabulating and computing percentages while qualitative data was analysed by coding and establishing common themes that emerged in the process of interacting with participants.