High freight dues hurt horticulture
Aug 01, 2008
HIGH freight charges levied on horticultural exports to the European Union and other markets are reducing farmers’ income.
By Samuel Balagadde
HIGH freight charges levied on horticultural exports to the European Union and other markets are reducing farmers’ income.
David Lule, the chairman of the Horticulture Exporters’ Association (HORTEXA), said the freight charges amount to sh4,306.64.
He said the freight cost for a kilogramme was $1.25 (sh2,050), while a fuel surcharge of $1.35 (sh2,214), handling fees of $0.04 (sh21.32) and security fees of $0.013 (sh21.32) are levied.
Lule said the Government’s poverty eradication plan among farmers should reduce the high freight costs by offering them subsidies.
“Low volumes of horticulture exports are attributed to high freight costs, poor infrastructure and other overheads. We only export 30 tonnes a week, which is a small portion of what farmers produce,†he said.
John Kavuma, the director of Jaksons Uganda, a vegetable growing and exporting company, said horticulture farmers were demoralised by the low income.
HORTEXA has 600 members in the central and western region. They specialise in produce like hot pepper, avocado and bananas.
HIGH freight charges levied on horticultural exports to the European Union and other markets are reducing farmers’ income.
David Lule, the chairman of the Horticulture Exporters’ Association (HORTEXA), said the freight charges amount to sh4,306.64.
He said the freight cost for a kilogramme was $1.25 (sh2,050), while a fuel surcharge of $1.35 (sh2,214), handling fees of $0.04 (sh21.32) and security fees of $0.013 (sh21.32) are levied.
Lule said the Government’s poverty eradication plan among farmers should reduce the high freight costs by offering them subsidies.
“Low volumes of horticulture exports are attributed to high freight costs, poor infrastructure and other overheads. We only export 30 tonnes a week, which is a small portion of what farmers produce,†he said.
John Kavuma, the director of Jaksons Uganda, a vegetable growing and exporting company, said horticulture farmers were demoralised by the low income.
HORTEXA has 600 members in the central and western region. They specialise in produce like hot pepper, avocado and bananas.