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57 rice companies fold operations

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Redudant rice milling machines at Damaza Grain Millers Limited factory in Jinja District. The company is among those that laid off some workers due to low production capacity. PHOTO by Joanita Mbabazi 

Recently, rice farmers, millers and exporters petitioned the Speaker of Parliament Rebecca Kadaga to stop the eviction of rice farmers from wetlands in favour of foreign investors.
Mr Isaac Kashaija, the chairperson of the Rice Business Sector Association, said the rice farmers were stopped from growing rice in wetlands, a situation that has left many jobless.
“If we are growing rice in wetlands and government thinks we are not doing it the right way, then we need to be guided on the best modern farming practices of growing rice in because rice as a food crop best grows in wetland areas. We are surprised that the wetlands are being given to investors to grow rice, leaving us the local farmers with no space to grow rice and the only option is to quit rice growing,” said Mr Maliba Christopher a farmer in Bugweri district.
To prove their outcry, Daily Monitor visited some of the rice milling factories and the rice gardens. At Damaza Grain Millers Limited factory, redundant machines greet us. Here, few workers also load skeletal sacks of rice for few locals who had come to buy the commodity. This was the same case at Wereke Investment Limited factory.
Much as we expected to hear sounds of machines sorting rice, or some activity involving loading and offloading sacks of both of sorted and paddy rice (rice with husks), this was not the case.
According to the owner of Damaza Grain Millers Limited, Mr Drake Magara, they laid off some workers due to low production capacity.
“On a daily basis, we used to mill around 50 tonnes of rice in a day. But now, we only mill five tonnes of rice.”
Mr Magara attributes this to farmers who ditched rice farming for other food commercial crops that can be grown on land as some have already faced eviction from wetlands to grow rice.
“Farmers have been evicted from the rice fields. They no longer get enough paddy rice to mill forcing them to lay off some workers. I have been employing 50 employees both those operating the machines to sort out rice and others in packaging loading and offloading. But I was forced to remain with 25 employees only,” Mr Magara says.
He adds that instead, imported rice has flooded the country.
“Why would we rely on foreign food like rice yet it can be locally grown here?” Magara adds.

A rice farmer in a wetland in Jinja. Farmers

A rice farmer in a wetland in Jinja. Farmers have been evicted from their rice fields. PHOTO BY Joanita Mbabazi

Low price
The price of local rice has gone down because local millers and retailers have to earn something to compete with the imported rice from other countries.
“This discourages farmers because a kilo of paddy rice costs Shs500, from a farmer. At retail price, a kilo of local fine rice costs Shs2,500 while a kilo of imported white fine rice is Shs3,000. We cannot sell at Shs3,000 because we shall not make more sales since we are competing with the imported rice as well on the market,” Mr Geoffrey Sudayisi, a retail business man in Jinja District says.
The rice sector employs more than 49,000 both millers, importers and farmers. But with the continuous low production, these are likely to abandon the business. Already, 57 companies that have been operating in losses of about Shs38b have closed business due to low production and meeting costs such as electricity and paying off workers. Bu and taxes cannot be affordable as they are earning less from the business.
Demand
According to Mr Isaac Kashaija, chairperson Rice Business Sector Association Limited, between 2007 and 2014, the demand of rice was about 225,000 metric tonnes but factories only produced 165,000 metric tonnes. From 2014 to 2017, the demand for rice increased to 499,200 but they were only able to produce 272,881 metric tonnes of rice.
In 2017 to 2019, the demand did not increase and remained the same like in 2017 but they were only able to produce 215,741 metric tonnes of rice. This implies that despite increased demand for rice, they cannot meet the production capacity to satisfy the all local consumers who need rice due to the increased decline in the production levels.
Mr Kashaija also complains that the increased importation of white fine rice from other countries like Tanzania which is not subjected to tax is greatly crippling the local rice business for people to earn from it.
14 rice import companies which include SWT Tanners Limited, General Agencies Uganda Limited,Ssuna Limited , Willex Commodities Limited, Akhcom Limited, Jassani General Trading Limited, Singa Rice Limited, Armour Trading Company Limited, Jan Mohammed Investments Limited,Galorre Intrenational Limited, Imba Foods Uganda Limited, Zen Trading Limited and Mabu Commodities, have been relieved of paying tax due to a delayed court appeal filed by these companies against Uganda Revenue Authority at the Commercial Court since 2014 opposing the 18 per cent VAT.

Import duty
These argue that they are currently paying 75 per cent import duty on rice, six per cent Withholding Tax, and 1.5 per cent infrastructure levy. Therefore, the addition of 18 per cent VAT levy would make their products expensive and unaffordable for customers.
“These are greatly enjoying the market space in the country as no ruling has been made yet since 2014 to date. During that financial year of 2014/2015, the VAT tax law was meant to work but these companies objected it saying this was abrupt and they were not notified as they had targeted to import rice for the festive season that year.
“But since 2014, up to now we find this unfair because when some exporters go to Tanzania much as it is part of the East African Community (EAC), they are charged taxes. But these importers must also pay the 18 per cent VAT tax,” Mr Kashaija says.
According to Mr Everest Kayondo, Kampala City Trader’s Association chairperson, importers within the EAC cannot pay tax on imports and exports due to the free movement of goods of services in all partner states. However, those who are not under this body find it fair enough to pay tax for their imported rice especially from Pakistan and India.

Power
Companies which have closed business include:
•Kikagate Traders Ltd, Taubah General Enterprises, Band Investment Uganda Limited,
•Upland Rice Millers Company Limited,
•Royal Rice Limited,
•Pearl Rice Ltd,
•Eastern Rice Company Limited,
•OBN Produce and Supply Company Limited,
•Link N Global Commodity Limited,
•3R Agro industries Limited
•Rwenzori Upland Rice Company Limited among others

Source: Daily Monitor

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FARM NEWS

Lack of Agronomists worries grape farmers in Mbarara

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Grape farmers in Mbarara are concerned that they are earning less from the crop due to the absence of an agronomist to offer expertise on the processes for growing and harvesting the crop.

There are more than 200 grape farmers in Ibaare, Nyamatojo and Nyakayojo, all in the South Division of Mbarara City, where more than three hills are fully covered with the crop. They are mainly planting Muscat and Karmen, which thrive well in semi-arid areas.

But the farmers said that they are growing the crop without clear information on the ideal varieties of grapes grown in Uganda, and knowledge of soil management, site preparation, planting, pruning, pest and disease control, fertilizer application as well as harvesting.

By nature of their work, agronomists work with farmers to help them grow the best possible crops, based on their extensive knowledge of chemistry, biology, economics, earth science, ecology, and genetics. They usually conduct experiments to develop the best methods for increasing the quality and production of crops and develop methods for protecting crops from weeds, pests, and harsh climates.

Alex Asiimwe, the Chairperson of Mbarara Grape Farmers Cooperative Limited said that without a specialist in the region, many of them are left to gamble with the crop. Often, he says, they struggle to manage the spread of pests in grape plantations.

James Mugabi, a grape farmer said he once lost more than 25 tons of grapes to fungus, which he didn’t know and failed to get the best drug. He narrates that once the crop has been attacked by either a pest or disease, the entire plantation is destroyed.

Allan Namanya, a grapes farmer from Katojo said the absence of an agronomist is costing them a lot since grapes are considered the most lucrative crop at the moment. He says that a kilogram of grapes costs between 2,500 and 3,000 Shillings and a bottle of wine costs 20,000, yet it can even cost much higher than this if they are advised on the right farming practices.

Mbarara city Agricultural Officer, Vincent Mugabi, said that the department also has a shortage of personnel knowledgeable about the relatively new crop for the area. He wants the government to consider taking them for training to acquire knowledge.

Grapes are harvested twice a year, in April/May and November/December seasons. They were introduced in Mbarara at Nyamitanga hill the Catholic seat by missionaries in the 1960s.

Original Source: URA via The Independent

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FARM NEWS

Farmers in Napak want security forces deployed in gardens

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A section of farmers in Napak District is demanding for the deployment of security personnel in gardens to prevent attacks by suspected Karamojong warriors.

This follows a message that was sent to one of the phones belonging to the community member in Nabwal sub county threatening people to stop cultivation or else their cattle will be stolen. Suspected warriors have also been dropping leaflets in the villages warning farmers of possible attacks in case they risk going to cultivate in their gardens.

Robert Koryang, a resident of Lotome trading center, says that they are worried of going to their farm gardens which are far away from their home because of threats from the cattle raiders.

Koryang said the warriors are still hunting for cattle and they see the farming season as an opportunity to target farmers who use oxen for ploughing.

He observed that the persistent insecurity in the region frustrated their efforts to cultivate last year leading to a hunger crisis.

Judith Anyakun, another farmer recalls that early last year a suspected raider chased them out of their farms before making off with four oxen that were used for ploughing.

She suggested that the security forces should be deployed in their settlements nearer to the fields so that they are able to respond to any attack that may occur during farm activities.

John Paul Kodet, the LCV Chairperson for Napak, says that they are taking the threats seriously because the warriors have been issuing warnings to the communities before attacking.

Kodet said they have distributed seeds to the farmers but he is skeptical if communities shall be able to cultivate due to threats from suspected warriors.

He noted that some villages in the sub-counties of Lopei, Lokopo, and Lotome are very distant from the military installations and this puts them at high risk of being attacked.

Kodet appealed to the government to tighten security in the targeted areas such that people will be able to cultivate without fear.

Denis Okori, the Napak Resident District Commissioner said that the security forces already have the intelligence about the planned attacks and measures have been put in place to protect the communities.

Okori said they have designed strategic plans on how the deployment will be conducted and therefore farmers should not get worried because the government is trying everything possible to ensure there is peace.

He also confirmed receipt of the phone used for sending threats and it has been taken to the Internal Security Organization for tracking.

Okori urged the communities not to worry but instead clear the gardens for farming in order to fight hunger in the families as security does its part to protect them.

Last year, the residents of Napak district suspended the use of oxen for ploughing over fears of being attacked by suspected warriors. The cattle were only kept from the confined kraals and only released during the day for grazing, and returned in the evening when the army took responsibility for keeping them.

Original Source: URN via The Independent

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FARM NEWS

Mbarara struggling to contain Rift Valley Fever, no livestock quarantine yet

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The government is reluctant at imposing the livestock quarantine on Mbarara despite registering five confirmed cases of death among humans resulting from Rift Valley Fever, the Resident District Commissioner, Emmy Turyabagyenyi Kateera has revealed.

According to Kateera , when they informed the Ministry of Agriculture, Animal Industry and Fisheries about the outbreak, they deployed a team on the ground to manage the situation. Mbarara District Veterinary Officer, Andrew Bakashaba, says that registered fifty cows infected by Rift Valley Fever in Rwanyamahembe Sub County on different farms.

He, however, says that they are currently managing the situation through sensitization. Bakashaba has warned residents against eating meat from animals that have died on their own, noting that Rift Valley Fever is only transmitted from animals to humans through infected meat.

He has also asked people to always watch out for meat that has a veterinary medical stamp as proof that it’s been tested and found to be clean. Turyabagyenyi said that they have directed extension workers to hold engagement and sensitization meetings with farmers and livestock traders on how to do self-preservation on their farms and the movement of animals.

PHOTO: The Jenner Institute

He said they asked the Ministry of Agriculture to hold on imposing a quarantine as they monitor the situation on the ground noting that if the situation goes out of hand they would be left without any choice but to announce the quarantine.

He says they have deployed veterinary doctors at all known slaughter slabs and asked them to double-check the meat before and after it is delivered to butchers.  Dr. Richard Atuhairwe, the in-charge of Bwizibwera Health Centre IV, says that the disease was detected among 30 people, and results from Uganda Virus Research Institute returned positive.  He says that five of the thirty have since died.

Rift Valley Fever is an acute viral hemorrhagic fever that is most commonly seen in domesticated animals such as cattle, sheep, and goats and can also cause illness in people. It is caused by the Rift Valley Virus. Meanwhile, a Quarantine has been imposed on Byembogo Village in Nyabisirira Town Council after a case of foot and mouth disease was confirmed on one farm.

Turyabagyenyi says a farm belonging to one Mr. Mungonya with over 1500 cattle had been stopped from sending out cattle and animal products like milk from the farm. He says that they have also temporarily closed the Kyeshema livestock market that is shared between Kiruhura and Mbarara districts noting that Kiruhura had last week closed its side.

He says they are now moving to vaccinate all animals in the village as they monitor the situation.

Original Source: URN via  The independent

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