Rwf1bn yet to be recovered from fertiliser loans, Agric ministry

The Ministry of Agriculture is planning to recover over Rwf 1billion of unpaid credit extended to farmers to purchase fertilisers.According to the coordinator of the national fertiliser programme at the ministry, Dr Charles Murekezi, the total amount loaned out to farmers for season A of 2012 was Rwf3.49 billion. However, only Rwf 2.10 billion has been repaid to date.The programme stipulates the repayment period to be during or immediately after harvests.However, some farmers are yet to pay back the credit which the government subsidises. Murekezi said instances of defaulting are prevalent in the Eastern Province, compared to other provinces.According to statistics from the Eastern Province, until mid-October, farmers in Gatsibo district had repaid 41percent of the credit, Kirehe 58 percent, Rwamagana 40 percent, and Ngoma at 43 percent. The rate of repayment in Kayonza and Nyagatare stood at 31 and 60 percent, respectively.“The reason for defaulting is the limited ability to combine repayment for the credit and purchasing inputs for the next season, as well as the false perception that fertilisers are a gift from the government,” Murekezi noted.In June, authorities of several districts in the Eastern Province postponed the recovery date to provide farmers with ample time to to repay but in vain. The ongoing Crop Intensification Programme (CIP) was put in place by the government in 2007 to increase agricultural productivity in high-potential food crops and ensure food security and self-sufficiency.The use of fertilisers was among the main activities of the programme. Other activities include agricultural product marketing and land use consolidation. The government subsidises fertiliser prices by as much as 50 percent and farmers pay for the rest depending on a particular crop. Distribution is done through a voucher system. Maize and wheat farmers pay 50 percent while rice and Irish potato farmers pay 27 percent.Towards the end of August, media reports quoted Innocent Ukizuru, the official in-charge of agriculture in Rwamagana district, as saying that farmers in that district had declined to pay for the fertilisers, despite a bumper harvest. “There is need to increase sensitisation for behavioural change and farmers must recognise that fertilisers are not free. They must be accustomed to take seasonal fertiliser credit as it is common practice in other countries,” he said.The Managing Director of Akagera Farmers Association in Nyagatare, Fred Kayumba, attributed the problem to mindset among some farmers, who he said believe that government loans should not be serviced.“Some farmers do not pay back under the pretext of poor yields: But there is need to set up a technical team to follow up or inspect their harvests,’’ he said.Despite farmers declining to pay the fertiliser credit, the government has few options; and plans to distribute more fertilisers in the forthcoming planting season.“For those who have not repaid fertiliser credit, their repayments are being structured: beginning with the coming harvest, they shall repay in full or in instalments according to their preference,’’ Murekezi said.

National

Rwf1bn yet to be recovered from fertiliser loans, Agric ministry