Rwanda to stop importing rice as gov't ponders reducing trade deficit

Rwanda could stop importing rice by 2018 as one of the plans aimed at helping reduce the country’s trade deficit. This comes after Parliament expressed concern over increased rice imports despite the current rise in domestic production. The agriculture ministry has already drafted a new plan that is expected to increase production to meet all the country’s rice needs by 2018, according to Tony Nsanganira, the State Minister for Agriculture. Nsanganira said the measures being undertaken include, extension of the rice plantation in Nyagatare District and availing more land to private investors who want to venture into commercial rice growing. Rwanda trade deficit improved 1.4 per cent to $1,761.3 million last year, from $1,787.2 million in 2014, according to the central bank’s monetary policy and financial statement released this month. The strategy involves working with co-operatives and easing access to farm inputs to boost production, said Innocent Musabyimana, the ministry’s Permanent Secretary. The government is already working on a plan to avail farmers more land of up 8,000 hectares for rice production by next year. Rice production in the country has currently increased by 23 per cent over the last five years. However, the country imported $37 million worth of rice in 2015 up from $31.1 million in 2014. Therefore, there is hope that increasing production could help reduce the gap. The government is currently trying to address the challenges in rice production including limited Post-harvest infrastructures, insufficient amount of good quality seeds due to absence of efficient public seed production and distribution, Musabyimana, said. Rwanda aims to achieve self-sufficiency in rice by increasing domestic rice production to 7 tons/ha by 2018. Expansion of land area under rice cultivation especially marshland area under rice cultivation from 7,000 Ha in 2008 to 28,500 Ha by 2018. The country has a total capacity of 66,094 Ha of potential marshlands which when harnessed will help boost rice production. Narrowing down the trade deficit gap Rwanda’s export volumes, both exports and imports registered a decline in value as a result of a fall in international commodity prices. Overall, the country’s total exports performed poorly, decreasing by 6.8 percent in value to $558.8 million from $599.8 million. Streamlining the sector The government also recently launched a committee to fight against illegal rice processing in the country. The development came after rice-growing co-operatives, millers and other stakeholders agreed to join hands to fight illegal processors. The committee is supported by the Agriculture and Trade ministries. There have been many complaints about some people engaging in rice processing without licences, a practice genuine firms say is depriving them of markets. The illegal dealers were also blamed for proliferation of poor quality rice on the market. However, some farmers say licensed processors pay less for the produce compared to unregistered dealers. Emmanuel Hategeka, Permanent Secretary in the Ministry of Trade and Industry said fighting against illegal rice processing and trade will help raise farmers’ morale, as well as boost production and quality of the produce. He added that the country has been importing rice to meet the increasing demand, adding that “streamlining the production and supply value chains will help increase local production. In 2014, the Rwanda Agriculture Board (RAB) unveiled an initiative that sought to increase rice production, ensure quality along the value chain, and ease access to agro-inputs. The Rice Sector Development Hub was expected to bring together stakeholders, including farmers, dealers, the private sector and researchers to share information and look for ways of improving production, quality and help farmers get quality seeds and markets. editorial@newtimes.co.rw

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Rwanda to stop importing rice as gov't ponders reducing trade deficit