Farmers expect more subsidies, better market infrastructure

As Rwanda and the other East African Community (EAC) member countries - Kenya, Uganda, Tanzania and Burundi – prepare to present their 2015/16 financial year budget estimates on June 11, The New Times will bring you views and budget expectations of various players in the local and regional economies, including traders, industrialists, academics and farmers, as well as bankers and SACCOs and the microfinance sector, among others. Today, farmers tell us why they want the government to provide more agro-input subsidies, slash fertiliser prices and put in place mechanisms that will ensure farmers get better pay for their produce in the 2015/16 financial year budget, reports Jean Mugabo. A cross-section of farmers interviewed by The New Times, expect the government to allocate money to speed up the irrigation programme targeting dry areas, as well as support initiatives aimed at taming global warming. Cyprien Munyarugendo, a maize and beans grower in Kirehe District, says government should draft a policy for indicative prices for all agriculture produce. He argues that such a policy is necessary to safeguard farmers from exploitation by middlemen. “We spend a lot of money on farming activities, but lack a good steady market for the produce. As a result, we are forced to sell the produce to middlemen at give away prices. The government should, therefore, set fair prices for all produce to ensure farmers benefit from their effort,” he says. The government sets indicative prices for maize and coffee, while the other crops’ prices are determined by forces of demand and supply. Munyarugendo says farming is becoming expensive because of high cost of fertilisers, urging the government to reduce prices of essential inputs to spur productivity. “One requires fertilisers of about Rwf50,000; 50 kilos of DAP and 25 kilos of urea and manure of at least Rwf30,000 for a half-hectare of maize farm in addition to cost of manpower. This leaves farmers with minimal gain,” he explains. Munyarugendo is, however, thankful of the government fertiliser subsidy. He urges the government to expand the irrigation programme to benefit more farmers, especially in areas that are drought-prone like Kirehe. Juvenal Ndabarinze, an Irish potato farmer in Burera District, commends government for the support given to farmers in the current budget, but appealed for more assistance to help modernise the sector. “The Rwanda Agriculture Board trained farmers on modern farming methods, and government has set up collection centres for Irish potatoes. However, we are still facing challenges to access fertilisers. NPK is at Rwf27,500 per 50-kg bag compared to Rwf18,000 two years ago,” Ndabarinze says. He says the fertiliser subsidy offered by government has also become a challenge, claiming that they are charged interest when farmers pay for it after crop harvest. This, according to Hemed Kazimoto, the co-ordinator of rice growers’ co-operatives in Kiriba zone, Gatsibo District, has forced some farmers to use insufficient fertilisers, leading to poor crop yields. The agriculture sector is expected to grow by 5.2 per cent this year, while the overall economy is expected to grow by 6.5 per cent in 2015 and 2016. The sector is one of the major drivers of economic growth and employs over 80 per cent of the Rwandan population. PSF for modern farming The Private Sector Federation (PSF), which helps link farmers to markets, expects the government to allocate more money toward agriculture modernisation to boost output. Benjamin Gasamagera, the PSF chairperson, says the government should promote agriculture mechanisation to increase production. He expects policies that will encourage investment in agriculture in the next budget. “We will continue working with government to ensure that agriculture benefits farmers,” Gasamagera says. According to the budget framework paper, Rwanda’s projected Rwf1,768.3 billion for the 2015/16 financial year budget will focus on intensifying efforts to increase agriculture productivity, addressing energy supply constraints, developing infrastructure for the productive sectors of the economy, and supporting export-oriented projects. business@newtimes.co.rw

News

Farmers expect more subsidies, better market infrastructure