Rwanda moves to cut post-harvest losses
The East African - 9 hours ago
Government has leased 13 warehouses to East Africa Exchange (EAX) as
the country moves to check post-harvest losses.
Taking over the warehouses also cushions farmers from price
fluctuations, which negatively affect supply side as farmers tend to
slowdown production whenever prices drop.
"We signed a memorandum of understanding with East African Exchange,"
said Tonny Nsanganira, Permanent Secretary of the Ministry of
Agriculture and Animal Husbandry.
"They (EAX) have the capacity to manage the warehouses better," Mr
Nsanganira explained why the public warehouses have been given for
free to the private investor.
The government set up silos and warehouses almost in every district to
improve post harvest handling of farm produce.
Taking over the warehouses should be a relief to farmers who are still
grappling with post harvest losses.
Official figures from the Ministry of Agriculture show that some maize
farmers are still recording loses of 9.24 per cent while rice growers
are registering 15.2 per cent losses last year.
This means the harvested food do not reach the tables, exposing the
country to food insecurity. The deal according to EAX, places farmers
in a better position to sell their products at a fair and competitive
price and access to financing.
"The exchange has signed up Collateral Management International, a
highly reputable collateral manager worldwide to support the farmers
in addressing post-harvest losses and improve farmer's income," a
statement from EAX reads.
The statement sent by Carol Rugege, communications director of EAX
further states that the deal will also provide the farmers with access
to finance, linking them to banks through its electronic warehouse
receipts programme.
The deal further provides what EAX officials called a "trading
platform" for the farmers to trade their products.
READ: Huge appetite has EAX wooing region
"An electronic warehouse receipt represents commodities stored in an
exchange-accredited warehouse with specific quality, quantity,
ownership, and reference location stated on the receipt," the
statement added.
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SIBOMANA Jean Bosco
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