Michel Nkurunziza

Thousands of tonnes of rice that have been in stores after harvest in Rusizi District will be bought up by the National Strategic Grain Reserve and East Africa Exchange (EAX), a regional commodity exchange company, local officials said on Sunday, August 18.

This comes days after President Paul Kagame tasked various institutions to find a solution to the issue of rice farmers whose harvest is rotting away due to lack of buyers.

“The buyers started to collect the rice on Sunday and all the rice that lacked market will be bought up,” Rusizi District Mayor Anicet Kibiliga, told the national broadcaster RBA.

Kibiliga said up to 3,850 tonnes were available to be bought from Bugarama.

Farmers had reported that 5,000 tonnes out of 7,000 tonnes of paddy rice harvested from Bugarama arable wetland were still in stores waiting for buyers.

There are more than 43,000 tonnes of rice that have yet to find potential buyers across the country, RBA reports.

The farm-gate price for rice ranges between Rwf500 and Rwf775 per kilo, depending on the quality and variety.

New state company to buy agric produce

In early August, the Ministry of Agriculture and Animal Resources said that a new state-owned company called “Rwanda Food Commodity Board” would be set up to purchase produce from farmers and help them afford agricultural inputs as well as technology to modernize and transform farming systems.

The proposed board is expected to stabilize food prices in Rwanda, addressing volatility in the agricultural commodities market.

It aims to manage the supply chain for agricultural commodities effectively, ensuring a consistent flow of essential products to the market.

It will source products through transparent contracts with farmers, establishing prices that reflect market dynamics.

The board will use validated Market Assessment Reports (MAR) to set prices for stored agricultural commodities. These prices will consider supply levels, operating costs, and inflation, ensuring fair pricing for all stakeholders.

Published Date: August 18, 2024