Govt unveils 50% subsidy to promote irrigation

Farmers engaged in food and export-oriented agriculture will benefit from a 50 per cent subsidy on irrigation equipment, one of the means the government has devised to enhance food production.

Thursday, August 14, 2014

Farmers engaged in food and export-oriented agriculture will benefit from a 50 per cent subsidy on irrigation equipment, one of the means the government has devised to enhance food production.

Amb Claver Gatete, the Minister for Finance and Economic Planning, said the initiative will help reduce the country’s expenditure on food imports, especially rice, and expand the exports base. 

"We spend millions of francs on rice and other foodstuff imports. We are confident this scheme will boost the sector’s productivity and, eventually, increase our exports, especially from the horticulture sub-sector,” Gatete said in an interview with The New Times.

He said both small and large-scale farmers, particularly those engaged in production of export-oriented crops, will benefit from the subsidy.

The minister also revealed that besides that irrigation equipment subsidy, about Rwf30 billion has been set aside to fund the agriculture sector.

Gatete noted the initiative would also help create more off-farm jobs in line with the second Economic Development and Poverty Reduction Strategy (EDPRS II).

The development should also be seen as encouraging sustainable agricultural production, and reduce the impact of climate change that is taking a toll on crop output, making it imperative for farmers to embrace irrigation.

According to Innocent Musyabimana, the Ministry of Agriculture permanent secretary, crop productivity in some parts of country like the Eastern Province has been declining in recent years due to inadequate rainfall.

"We want to develop about 500 irrigation schemes, especially in those areas that experience prolonged droughts, like Bugesera and Kayonza, to ensure food security,” he said.

Musyabimana added that embracing modern  agriculture practices, including crop irrigation and application of fertilisers are critical to foster sustainable production.

To boost the capacity of the sector, the ministry is collaborating with government of Israel to train its field officers on new irrigation technologies.

Under EDPRS II, the government wants to transform subsistence farming into market-oriented agriculture to achieve sustainable economic growth. Special focus has also been put on production of flowers, vegetables and fruits to help diversify the country’s exports.

According to Gross Domestic Product (GDP) figures for the first quarter of 2014, the agricultural sector grew by 5 per cent and contributed 32 per cent to the overall economic growth.