The government has raised farm gate maize price by 5 per cent in the wake of a shortfall in production occasioned by prolonged drought in the Eastern province — the country’s leading producer of the crop. The Ministry of Ministry of Trade and Industry recently fixed the farm gate maize price at Rwf237 per kilogram, up from Rwf226 that was fixed in February last year. The drought which ravaged parts of the country in recent months disrupted maize production and harvest, forcing the government to release food relief to over 36,000 households. The price review was arrived at following government consultation with major players in the maize value chain, the Minister of Trade and Industry, Béata Habyarimana, said. The ministry says that prices are also set based on the investment made by farmers in order to cushion them from potential losses. The new price factors in the cost of farm inputs such as fertilisers as well as the anticipated weather effects, said Cassien Karangwa, the Director of Domestic Trade at the Ministry of Trade and Industry. Evariste Tugirinshuti, the president of the National Federation of Maize Farmers’ Cooperatives, told The New Times if the new price is effectively enforced, it will offset possible losses. He said that some farmers in Nyagatare District were selling their maize produce at as low as Rwf200, losing fortunes in the process due to the high investment outlays. “We welcome this new maize price,” he said, estimating that farmers’ profit margins will be in the region of 20 per cent per kilogramme. However, Tugirinshuti said due to drought maize production is expected to drop by 40 per cent. Rwanda produced 480,000 tonnes in 2021, according to a report by the National Institute of Statistics of Rwanda, which was released in December 2021. Enforcement of the new price The Ministry of Trade said that all the maize produce for sale should be collected at appropriate places in order to improve its trade. It observed that all traders are required to have licenses allowing them to deal in agricultural commodities. The Ministry also requested local leaders to work closely with farmers in order to support the enforcement of the new price and prevent middlemen from exploiting farmers. Talking about enforcement, Karangwa said that there is a need for collaboration among concerned entities. He said that buyers should have contracts with farmers and include in those contracts the price at which they will be buying their produce, explaining that the produce might be bought at a higher price than the farm gate one depending on various reasons. To avoid exploitation, he added, farmers should sell their produce to authorised entities. “We will be carrying out inspections to ensure that the set price is being observed,” he said, adding that such an exercise will be possible thanks to the partnership with the Rwanda Inspectorate, Competition and Consumer Protection Authority.
