The Ministry of Trade and Industry (MINICOM) has fined 113 middlemen who were found to have purchased maize harvests without the necessary licenses.
As of March 14, 2024, the middlemen had paid Rwf43.2 million in fines, Cassien Karangwa, the Director of Domestic Trade at MINICOM, told The New Times.
The crackdown on middlemen comes after farmers across the country reported that, although they received an abundance of maize harvest during the concluded Agricultural Season A 2024, they were struggling with finding buyers.
According to the Ministry of Agriculture and Animal Resources, maize production volume was estimated at 446,460 metric tonnes, compared to 390,879 metric tonnes in the same season in 2023.
The farmers claim that because authorised buyers are purchasing from them, middlemen have taken advantage by buying their maize at a lower price.
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Jean Nepo Nsabimana, the head of the "Twiteze Imbere Musha” cooperative of farmers in Musha Sector, Rwamagana District, clarified that rather than letting their maize go into losses, they would rather sell it to middlemen and receive a meagre profit than nothing at all.
"The price that the middlemen give us to take our maize harvest is lower than the price that MINICOM determined, but sometimes the harvest is too much and all you want to do as a farmer is sell the harvest to the middlemen,” he stated.
Karangwa declared that any buyer of maize harvest must have received a license from the sector level and a certificate registered with RDB under the established protocol.
A look at penalties
Karangwa clarified that there would be harsh penalties for anyone who purchases maize without permission, or violates these rules.
He explained that the fines vary depending on how many tonnes they have illegally purchased.
The fine for purchasing maize without a district permit is Rwf 500,000. Middlemen who purchase small quantities of maize below the recommended price, but less than one kilogramme, are subject to a fine of Rwf 150,000.
Penalty for purchasing at a lower price than listed: A truck carrying three tonnes will be fined Rwf 300,000; a truck carrying five tonnes will be fined Rwf 500,000; a truck carrying 10 tonnes will be fined Rwf one million; and a truck carrying over 10 tonnes will be fined Rwf two million.
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In February, the Ministry of Trade and Industry made price changes for maize based on the water or moisture content of maize to determine its dryness level.
Based on the updated prices, a kilogramme of maize (threshed grains) with a moisture content of 13.5 to 18 per cent is valued at Rwf400, while a kilogramme of maize with a moisture content of 19 to 25 per cent is valued at Rwf350. The minimum purchase price for maize cobs varies based on the moisture content levels and can range from Rwf311 to Rwf260 per kilogramme.