Over 25,000 rice farmers to get technical support

By Clare Namanya

Uganda Development Bank (UDB) and FOL group have signed a partnership agreement that will see a total of 25, 000 rice farmers benefit. The move is intended to increase production of rice in Uganda. This is timely considering that research findings show that rice is fast becoming a key consumption crop for citizens.

The signing was attended by Gabriel Ajedra, the State Minister for Finance in charge of investment, representatives of the out growers, those from Operation Wealth Creation, the CEO of UDB, the board chairperson of Uganda Investments Authority, the commissioner general of Uganda Revenue authority and the CEO of Capital Markets Authority.

The signing took place at the launch and introduction of Kingdom rice into Uganda. At the function, Geoffrey Adito said FOL Group started its operations in Uganda in 2014 by putting up a rice factory of 130, 000 tonnes annual capacity in Namanve.

 "Our mill which is the second largest in Africa needs in excess of 130, 000 tonnes to run at full capacity. To cover the deficit, we took a major decision to start growing the rice locally. That amount of output required 30, 000 acres which we vigorously mobilised from different farmer associations in the country," Adito said.

The farmers associations that are yet to benefit from this arrangement include Manafwa basin river rice farmers and Doho rice scheme farmers in Butaleja District with 1800 and 3000 farmers respectively, Agoro rice scheme cooperative society in Lamwo District, Hope Development Initiatives society in Amolatar District with 1000 members,  Mother Editho farmers association in Gulu district with 5000 farmers, Olweny rice scheme in Lira has 1000 farmers and Wakulima growers association in Bugiri district with 500 farmers. Others include Muhoro cooperative enterprise in Kibaale, Abasaija Kweyamba cooperaitive society in Kasese.

Elizabeth Rumanyika, FOL group's director of strategic planning and development said they will provide the specific long grain rice seed to the farmers, avail technical agricultural support, give them quality farm inputs from certified service providers and finally purchase all the rice produced by the farmers.

"The farmers will be able to acquire loans at an interest rate of 10%, to enable them pay for all the necessary requirements up to the time when rice is ready for harvest. Uganda is currently importing most of its rice but with this intervention, production will increase and we shall reduce imports and increase exports and hence improvement if Uganda's balance of payment by reducing foreign expenditure," Rumanyika said.

Dr. Grace Apea who represented the out growers said that the arrangement will solve the problem of production in the value chain which they always face. "This is going to greatly change the lives of the local farmers because their household income will improve," she said

Patricia Ojangole, the CEO of UDB said that the ensure food security, improve foreign exchange earnings, improve house hold income and impart skills of the best farming methods to the farmers involved. It is an good opportunity that farmers should take advantage of," she said   

Hon Ajedra commended the two parties, UDB and FOL group for their contribution to the monumental step in Uganda's agricultural sector. He said that the agreement will henceforth empower our farmers to increase rice production and its quality by applying high standards of production and increase exports for Ugandan rice to other markets.

"The private sector is at the forefront of development and farmers need to access capital, technical support and markets if Uganda is to attain its full potential in agriculture. Over 70% our citizens are involved in agriculture but unfortunately, it is subsistence so there is need to commercialise and this is such a step. I am happy that this arrangement involves the forward and backward linkages," he said.