Maize farmers decry low funding, taxation

Lack of access to finance and taxation on maize flour are affecting maize production, farmers and government officials have said. “Maize growing co-operatives still face many challenges along the supply chain. Farmers also lose a lot of produce because of extreme weather conditions and poor storage. “Farmers and co-operatives still lack the necessary planning and management skills, as well as enough working capital,” said Robert Opirah, the director general of trade and investment at the Trade and Industry Ministry. Opirah noted that the problems have led to high maize prices and insufficient supply of the grain on the market. He added that imposing VAT (value added tax) on maize flour was affecting efforts aimed at value addition to agricultural produce. Opirah was speaking during a meeting between maize farmers’ co-operatives and the Minister of Trade and Industry, Francois Kanimba, to discuss matters affecting the sector in Kigali on Monday. He revealed that they were working with the Ministry of Agriculture to form an integrated value chain working group to equip farmers with commercial agriculture techniques and help them source for market information using mobile phones. Damien Mugabo, the director general of the Rwanda Co-operative Agency (RCA), urged farmers to market their produce collectively if they want competitive and stable prices for the cereal. “When you sell maize through your respective co-operatives you are assured of good prices compared to when each member sells individually. Besides, collective marketing gives you bargaining power that guarantees sustainable and better markets,” Mugabo said. Mugabo noted that there were 333 maize co-operatives in the country, 109 of which have the potential to produce large quantities of the crop. “Over the coming few months, RCA will make sure that all co-operatives have the right drying and storage facilities required to ensure quality produce,” Kanimba told the farmers. He added that the ministry would also address the challenges facing farmers. The minister advised the leaders of the maize co-operatives to secure contractual buyers, and also work with the Rwanda Grains and Cereals Corporation to ensure a stable market for the grains. The corporation buys surplus maize from farmers and sells it when there is a shortage to stabilise the market.

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Maize farmers decry low funding, taxation