Coffee Bill: Ndebesa recommends coffee fund for farmers

Makerere University don Prof. Mwambutsya Ndebesa has recommended that the government should establish a coffee fund to avail credit facilities to coffee farmers and processors.

"The movers of the National Coffee Bill 2018 are silent on how the government will provide funds to farmers and processors which will compromise the quality of Uganda's coffee on the international market," Ndebesa said.

"How can the state demand for approved better services when farmers lack funds to buy coffee drying materials like tarpaulin and wire drying mesh among others? I request the MPs to insert a clause in the Bill to avail a coffee fund," he added.

However, Ndebesa did not elaborate on the sources of the coffee fund and which bank to distribute it while giving his views on the Bill on Friday.

The Bill was being scrutinised by legislators on Parliament's committee on agriculture chaired by Abim Woman MP, Janet Okori-Moe.

Okori-Moe said her committee will carry out wide consultations on the coffee fund adding that the input of the researchers will be captured in the final report.

She said Uganda is a member of the International Coffee Organisation and is seeking, under the Coffee Roadmap, to increase coffee productions to 20 million bags by 2020.

The proposal was seconded by the Budadiri East MP Vincent Wobwoya saying farmers complain they face a lot of bureaucracies when trying to access credit facilities from the Uganda Development Bank whose objective to finance development in the economy with emphasis on agriculture.

Ndebesa said the Bill is silent on coffee imported from other countries and re-exported.

"Coffee dealers from Tanzania, Democratic Republic of Congo and South Sudan among other export coffee to Uganda, yet Ugandans process this coffee before it is re-exported to other countries. There should be a provision in the Bill to ensure such coffee meets the required international standard," he said. 

Ndebesa is opposed to Clause 28 of the Bill which states that the authority may, after being satisfied that a registered coffee farmer has failed to comply with the terms and conditions of registration, strike the name of the coffee farmer off the register.

He is also opposed to Clause 28 (2) of the Bill which says that an aggrieved de-registered farmer has to appeal to the minister of agriculture.

Ndebesa said a poor farmer who resides in upcountry and also harvests less than ten sacks of coffee cannot trek miles to Kampala to complain before a minister of agriculture.

"I propose a tribunal comprising of coffee growers, processors, millers, non-governmental organisations must be established in all districts to arbitrate the complaints of deregistered farmers.  Restrictive laws of de-registering some coffee farmers may lead to inequality in the coffee industry because it favours the rich farmers and processors who have working capital," Ndebesa added.

The West Budama MP Richard Othieno Okoth said the Bill is silent on the key areas of price stability through a stabilisation fund and the revival of cooperatives as a marketing tool for coffee which risk turning Uganda Coffee Development Authority (UCDA) into a white elephant.

The current Bill relies on stakeholder agency implementation rather than administrative principles.

The committee vice chairperson, Lawrence Akuguzibwe (Mwenge North), said the Bill seeks to give powers to UCDA to regulate all coffee farm and off-farm activities, a shift away from the current mandate under the Uganda Coffee Development Authority Act, 1994.

The Coffee Bill was introduced by the government to repeal the Uganda Coffee Development Authority Act which limits the powers of UCDA to only overseeing the coffee sector but with no punitive measures for errant farmers.