The Ministry of Agriculture and Animal Resources (MINAGRI) recently proposed the establishment of a new institution, the "Rwanda Food Commodity Board," aimed at purchasing produce directly from farmers.

This initiative is designed to assist farmers in accessing essential agro-inputs and modernizing farming systems through technology. Below are key things to know about the proposed agency.

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Agency Status

According to the concept note, the Rwanda Food Commodity Board will be a state-owned company, registered with the Rwanda Development Board (RDB), and supervised by MINAGRI. Its mission is to ensure national food security by making staple foods available and affordable.

If approved, the Rwanda Food Commodity Board will become the third agency under MINAGRI, joining the Rwanda Agriculture and Animal Resources Development Board (RAB) and the National Agricultural Export Development Board (NAEB).

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Stabilising Food Prices

A primary objective of the proposed board is to stabilize food prices in Rwanda, addressing volatility in the agricultural commodities market.

Supply Chain Management

The board aims to manage the supply chain for agricultural commodities effectively, ensuring a consistent flow of essential products to the market. It will source products through transparent contracts with farmers, establishing prices that reflect market dynamics.

Importation Safeguards

In cases where domestic production is insufficient, the board will procure essential commodities from foreign markets at prevailing prices, ensuring a steady supply to meet national needs.

Market assessment reports

The board will use validated Market Assessment Reports (MAR) to set prices for stored agricultural commodities. These prices will consider supply levels, operating costs, and inflation, ensuring fair pricing for all stakeholders.

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Leakage Control

To prevent the unintended outflow of food commodities from the domestic market, the board will implement stringent measures, including binding contract farming agreements that enhance accountability and resource management.

Boosting agriculture production and managing subsidies

The board&039;s initiatives will target large agricultural sites identified as priorities, contributing over 60% of national production. The agency will start with farmers in agri-hubs, food basket sites, and areas with intensive livestock farming.

Key crops such as maize, beans, Irish potatoes, and rice will be the focus. Legally binding farming contracts will provide farmers with access to subsidies, with mechanisms for recovery from their sales. This will encourage efficient farming practices and increased production.

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By optimizing the management of government agricultural subsidies, including fertilizers, seeds, mechanization, and insurance, the board will empower farmers to enhance productivity. This approach will be complemented by interventions focusing on post-harvest infrastructure, market linkages, and advisory services.

Food Balance Sheet

The new agency will also maintain food storage facilities to ensure food security and provide food balance sheets for the country. These statistics are critical for assessing food security and formulating policies to ensure a stable food supply.