WFP earmarks $100m for produce

Dec 28, 2008

THE World Food Programme (WFP) has earmarked $100m (about sh190b) to buy maize, beans and other grains from local small scale traders and farmers.

By Kikonyogo Ngatya

THE World Food Programme (WFP) has earmarked $100m (about sh190b) to buy maize, beans and other grains from local small scale traders and farmers.

Stanlake Samkange, the country representative, said they had relaxed their policy and incorporated buying directly from farmers with low tonnage to help the farmers fight poverty.

“We normally invite tenders for 2,000 metric tonnes and above, but we decided to include direct purchase of low tonnage from farmers and traders to support them,” Samkange said while presenting a sh41m cheque to Rock Trust, a farmers’ group in Jinja last week. The WFP’s intervention is a major boost to grain trade.

Farmers were previously being paid about sh50 per kilogramme of maize during bumper harvests. WFP buys the grain at sh950 a kilogramme.

Rock Trust accumulated 48 metric tonnes of maize in the last harvest season and stored it at the Uganda Commodities Exchange’s (UCE) warehouse in the area.

UCE helps farmers’ groups store their grain and issues warehouse receipts.
Farmers sell the produce when there is a competitive price.

The receipts can also be used as collateral in banks and other financial institutions.

WFP is the single largest buyer of grain in Uganda. Last year, the UN body bought grain worth $55m to to feed refugees in the Great Lakes Region.

Samkange, however, said grain production in the country was still low and they were buying more maize and beans from South Africa and India.

“We need to buy more produce locally.
“It would help us by-pass transport and other problems like Somali pirates, who are interrupting our food deliveries,” he said.

WFP is to support Karamojong to grow their own food to end their dependence on food rations.

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