MPs Urge Govt To Pay Sh6b Coffee Debt
Mar 18, 2004
PARLIAMENT's finance, planning and economic development committee has urged government to pay shs6 billion owed to coffee nurseries, suppliers of seedlings to farmers over the last three seasons.
By Mary Karugaba
PARLIAMENT's finance, planning and economic development committee has urged government to pay shs6 billion owed to coffee nurseries, suppliers of seedlings to farmers over the last three seasons.
“Let the ministry of finance release the shs 6b to Uganda Coffee Development Authority (UCDA) so that the farmers can be paid,†said MP Loyce Bwambale(Kasese).
MP John Odit, the chairperson, agriculture committee complained about the arrears while appearing before the finance committee last week.
The delayed payment was as a result of the ministry of finance’s failure to release enough money as well as budget re-allocations within the agriculture ministry that has made it hard for Uganda Coffee Development Authority (UCDA) to clear all the debt.
“The ministry had been given shs 1bn to pay the farmers but instead it was re-allocated to the establishment of the coffee shop in Denmark. Why did government remove such amount of money meant for poor farmers from UCDA to develop international projects,†Odit asked.
Because of this debt, nursery operators have stopped supplying seedlings to the farmers, Odit said. The seedlings are now over grown and cannot be replanted.
This has reduced the amount of new acreage coming under coffee and a big loss to government, nursery operators and the farmers themselves, he said.
UCDA acknowledged the debt but said some farmers had taken undue advantage of the governement’s program.
“Coffee seedlings have exceeded what originally government had requested. We decided to stop the supply but farmers went on rampage and totally outdid governments demand,†said UCDA’s development manager George Lukwago.
The government has earmarked coffee as a strategic export, which can double as a vehicle for poverty alleviation. Between September 2001 and March 2003 distributed 46.2 million seedlings free.
Under government’s strategic export plan it is projected that $210 m worth of coffee will be shipped out in 2005/06 compared to $86 m when the project was started in 2001/02.
Ends
PARLIAMENT's finance, planning and economic development committee has urged government to pay shs6 billion owed to coffee nurseries, suppliers of seedlings to farmers over the last three seasons.
“Let the ministry of finance release the shs 6b to Uganda Coffee Development Authority (UCDA) so that the farmers can be paid,†said MP Loyce Bwambale(Kasese).
MP John Odit, the chairperson, agriculture committee complained about the arrears while appearing before the finance committee last week.
The delayed payment was as a result of the ministry of finance’s failure to release enough money as well as budget re-allocations within the agriculture ministry that has made it hard for Uganda Coffee Development Authority (UCDA) to clear all the debt.
“The ministry had been given shs 1bn to pay the farmers but instead it was re-allocated to the establishment of the coffee shop in Denmark. Why did government remove such amount of money meant for poor farmers from UCDA to develop international projects,†Odit asked.
Because of this debt, nursery operators have stopped supplying seedlings to the farmers, Odit said. The seedlings are now over grown and cannot be replanted.
This has reduced the amount of new acreage coming under coffee and a big loss to government, nursery operators and the farmers themselves, he said.
UCDA acknowledged the debt but said some farmers had taken undue advantage of the governement’s program.
“Coffee seedlings have exceeded what originally government had requested. We decided to stop the supply but farmers went on rampage and totally outdid governments demand,†said UCDA’s development manager George Lukwago.
The government has earmarked coffee as a strategic export, which can double as a vehicle for poverty alleviation. Between September 2001 and March 2003 distributed 46.2 million seedlings free.
Under government’s strategic export plan it is projected that $210 m worth of coffee will be shipped out in 2005/06 compared to $86 m when the project was started in 2001/02.
Ends