By Tosan Edematie
In a significant move to bolster the agricultural sector, the Rwandan government has unveiled plans to establish the Rwanda Food Commodity Board (RFCB), an initiative aimed at purchasing produce directly from farmers. This measure is expected to address the challenge of giveaway prices and stabilize farmers’ incomes.
The Ministry of Agriculture and Animal Resources announced that the RFCB will not only buy produce but also support farmers in acquiring agro-inputs and modern technology, crucial for transforming and modernizing farming practices in Rwanda.
Evariste Tugirinshuti, president of the Rwanda Maize Farmer Cooperatives Federation, highlighted the disparity between market prices and government-proposed rates. “In the 2024 season A, some farmers sold maize at between Rwf220 and Rwf250, whereas the government had proposed Rwf400. This is a giveaway price. If the agency buys farmers’ produce, we will be able to secure guarantees for bank loans,” he noted.
Tugirinshuti emphasized the need for the agency to facilitate connections between farmers and banks to provide loans at lower interest rates, making it easier for them to afford necessary agro-inputs and agricultural mechanization equipment.
Currently, many rice farmers face difficulties due to a lack of market for their produce. For instance, approximately 5,000 tonnes of paddy rice out of 7,000 tonnes harvested from Bugarama arable wetland in Rusizi District remain unsold. Emmanuel Byishimo, a farmer from the same district, lamented the post-harvest losses, saying, “We have no money to afford the cost for the next farming season.”
Patrick Karangwa, the Director General of Agriculture Modernization in the Ministry of Agriculture and Animal Resources, explained that the RFCB will function as a state-owned company. “It would link to other services, including technologies, agro-inputs, and access to finance. Currently, agriculture financing is around 6% of all the loans people take from banks,” he said.
Karangwa added that the design for the RFCB has been completed and is awaiting approval from the relevant authorities. The agency aims to be a key driver of transformation and modernization under the fifth Strategic Plan for Agriculture Transformation (PSTA 5), which runs from the fiscal year 2025 to 2029.
The RFCB is expected to create a tripartite framework agreement involving the agency, farmers, and service providers, ensuring that farmers do not struggle with upfront costs. The agency will deduct payments upon harvest for qualifying farmers.
Once approved, the RFCB will become the third agency under the Ministry of Agriculture, alongside the Rwanda Agriculture and Animal Resources Development Board (RAB) and the National Agricultural Export Development Board (NAEB). Karangwa highlighted that the new agency would also serve as a food storage facility to ensure food security and maintain food balance sheets for the country.
With the establishment of the Rwanda Food Commodity Board, Rwandan farmers may soon find much-needed relief from market uncertainties, enabling them to focus on sustainable and profitable farming practices.
