Gov’t ensures Rwanda safe from food crisis

The Ministry of Commerce has embarked on the campaign of informing the public about food prices. The aim is to protect consumer from exploitation that has been practiced by traders. Awareness campaigns are being aired on national television and radio highlighting the cost of different food prices from various markets and from different food growing areas.

Saturday, June 14, 2008
The government is making information available to buyers and sellers alike. (File photo).

The Ministry of Commerce has embarked on the campaign of informing the public about food prices. The aim is to protect consumer from exploitation that has been practiced by traders.

Awareness campaigns are being aired on national television and radio highlighting the cost of different food prices from various markets and from different food growing areas.

The move comes at a time when the world is facing a food crisis. Rwanda itself faces no such crisis despite a slight increase in food prices.

Antoine Ruvebana, Secretary General of the commerce ministry, said in a telephone interview that the increases in food prices were due to the ignorance of consumers and the illegal practices of the intermediary cooperatives.

"These intermediary cooperatives were said to connive with local authorities and charge fees illegally. They have been acting as market brokers by buying food at low prices from farmers and then selling it to consumers at high prices – thus earning themselves an abnormal profit yet exploiting citizens,” he disclosed.

Ruvebana further explained that citizens now pay depending on what is being communicated to them.

"Even if there is an increase, it is a reasonable one.”

The information communicated includes retail and wholesale prices from all the Kigali city markets. At present, matooke (bananas) and Irish potatoes are the only foodstuffs aired since these were the ones highly priced.

Currently, a kilogramme of matooke is Frw100 while that of Irish potatoes is at Frw110 in Kimironko and Kabeza markets. These prices vary according to where the foods are grown and bought from.

Ruvebana further said that the telephone line was opened up because information was not easily assessable. All co-operatives dealing in foodstuff were banned from further trading.

"We also opened up a toll free line (3739) for farmers, consumers and traders to communicate their problems and suggestions to the ministry,” he said.

The minister further acknowledged that such a measure will encourage farmers to grow more foodstuffs because they will be in position to assess prices for their products at various final consumer markets.

"Farmers will be now selling directly to individual markets and their problems will also be expressed directly to people concerned for considerations,” he said.

The toll free line is also used to communicate price changes for various foodstuff for updates. It’s now up to the buyers to know how much they are supposed to pay for food when they go to these markets, he said.

Back to normal

Samuel Ntambara, a businessman in Giporoso, acknowledged the government efforts of intervening directly in issues concerning the general public.

"True, co-operatives might well have been cheating us through illegal practices, since the alarm was raised and a campaign against them begun, food prices have gone back to normal and are stable,” he said.

"Some people had even started eating once a day because they could not afford buying foodstuff at high and unpredictable prices,” Ntambara added. The government efforts have served another purpose.

"Before I moved to the market myself, my house-help used to cheat me by telling me that a kilograme of fresh peas costs Frw1300 and that of fresh beans costs Frw900.  Such prices are high compared to those communicated,” Ntambara said.

Clémente Uwishimwe, a food seller in Kimironko market, says the government strategy is of great importance to traders and consumers alike.

"As a trader, I am earning a profit. I know who much food costs in the villages and how much I must sell,” Uwishimwe explains.

"There is also room for slightly increased prices to meet uncertainties that we always encounter during transportation - but even in that case the increase is reasonable,” she elaborated. 

She further said that before, traders were buying foodstuff at extremely high prices from co-operatives which has been forcing them also to sell at high prices too.

"But now we know how much farmers sell which has significantly contributed to the low prices for foodstuffs,” Uwishimwe added.

Uwishimwe  explained that food is now affordable unlike in the past when even the trader was ashamed to tell the customer how much a kilograme of Irish potato costs.

Looking for other ways to prevent escalating food prices, the ministry is to carryout a study on all locally produced food in order to identify the most sensitive foodstuff.

The study will provide information of how much is produced, how much it costs. This will result in fixed food prices so as to avoid exploitation.

In addition, the study will also involve other costs incurred such as transport. These costs will be accounted for when determining the final food prices.

Ruvebana further said that the study will also highlight ways of improving agricultural productivity.

Ends