The minimum price at which unprocessed rice must be bought from farmers has been dropping, negatively affecting the income that farmers get from their produce.

The price of a kilogramme of unprocessed short-grain rice was reduced from Rwf270 in 2019 to Rwf259 in June 2021, while that of long grain rice was reduced from Rwf290 to Rwf279.

Yet, farmers in Bugarama plain in the Western Province’s Rusizi district say that a kilogramme of processed rice costs between Rwf1,200 and Rwf1,500 depending on the type, meaning that they spend more on producing this type of food.

Currently, local farmers pay Rwf768 for a kilogramme of urea, representing an increase of about 40 per cent from Rwf462 in 2020.

For DAP (diammonium phosphate), a kilogramme costs Rwf832, a rise of 42 per cent from Rwf480 in 2020, while that of NPK (nitrogen, phosphorus, and potassium), rose by about 30 per cent to Rwf882 from Rwf620 in the same period.  

Moreover, farmers in remote areas where transport costs are higher could be paying a higher price than those set by the Ministry of Agriculture and Animal Resources.

For instance, Jonathan Niyizanderera, a farmer in Bugarama plain in Rusizi district said that a kilogramme of urea is Rwf950, NPK costs Rwf1,000, and DAP is Rwf980.

"Considering that the investments and labour needed in production are going up, a kilogramme of paddy (unprocessed) rice should be Rwf450,” Niyizanderera suggested.

Emmanuel Musabyimana, another rice farmer, also said that based on the high cost of production, a kilogramme of unprocessed long-grain rice should be priced at Rwf450 and that short grain rice should be Rwf360.

"That can help us get adequate income,” he said.

In addition to high fertiliser costs, Musabyimana said that even the price for rice seeds is high, which contributes to higher production costs.

"This farming season, we bought rice seeds at Rwf1,050 per kilogramme, but the current price for unprocessed rice is Rwf259,” he said.

Rice price review due next week

Jean Damascene Rwamwaga, the president of Rwanda rice farmers' federation, told The New Times that the federation was engaging with concerned entities to revise the prices, expressing hope that they are likely to go up for this farming season harvest.

Cassien Karangwa, the Director of Domestic Trade at the Ministry of Trade and Industry, told The New Times that normally, rice price is set every season to take into account the investment of farmers, their profit margin, and the rice industry performance.

A technical committee is set to discuss possible new prices next, Karangwa disclosed, adding that new price will be announced by mid-June this year.

High transport cost

Peter Uwamahoro, the Vice Chairman of Rwanda Forum of Rice Millers, said that prices of processed rice have been driven by the hike in petroleum products occasioned by the Russia-Ukraine war. 

The rise in fuel costs drove up transport expenses for imported agricultural commodities by threefold. Rwanda relies on rice shipments from Pakistan and Thailand among others to supplement local production.

According to the Ministry of Trade and Industry, local demand for rice is estimated at 145,000 tonnes a year, while national supply accounts for about 40 per cent. The 60 per cent deficit is met through imports.

Another factor for the increase in local rice prices, he said, is that Tanzania, which is one of the major rice exporters to Rwanda, had production issues in the previous season, which affected Rwanda’s rice imports.