MASINDI farmers earned sh90m after selling 100 tonnes of maize grain to the World Food Programme under the Warehouse Receipt System.
â€œThey earned a premium price of sh795 per kilogramme as opposed to the farm gate prices, which at the time stood at sh525,â€ said Christian Baine, the CORONET managing director.
CORONET is the company managing the warehouse in Masindi. The system, supported by Uganda Commodities Exchange, allows farmers to deposit produce in a gazetted warehouse from where they can search for buyers. They can also use the produce as collateral for bank loans.
Baine said through the system, farmers were able to keep sufficient quantities, which were also of the right quality to attract big buyers like the World Food Programme.
â€œAs collateral managers, we do the quality assurance role to ensure that all the produce deposited meets the standards that can attract a premium price for the depositors,â€ he said.
He said through the system, farmers were able to realise a Grade One quality, which enabled them to get a better price.
The Government through the Uganda Commodities Exchange is working to popularise the warehouse system as it seeks to allow farmers use their produce as collateral for loans and enable them to trade directly with the big buyers to reduce middlemen exploitation.
Baine noted that the Masindi warehouse story would be rolled out to other areas including Kasese, Lira and Jinja where similar support is being offered to farmers.
Dean Kainika, the CORONET general manager, said they were working with partners like the Uganda Commodities Exchange and banks to popularise the system among private sector.
Masindi farmers earn sh90m