Amuru risks losing over Shs 1.1bln for irrigation equipment
AMURU-Amuru district production department is at risk of losing at least Shs 1.1 billion meant for procuring small-scale irrigation equipment.
The government allocated the said money through the Micro Scale Irrigation Programme being funded by the World Bank under the Uganda Intergovernmental Fiscal Transfer [UGIFT] in the 2022/2023 financial year.
However, with the current financial year ending on June 30, only Shs 68.4 million of the Shs 1.2bln has been given out because farmers have to first show interest to benefit from the programme by contributing 25 percent of the total cost of the irrigation equipment.
Simon Peter Komakech, the Amuru district agricultural officer said that of the 90 farmers who showed interest in benefitting from the irrigation programme, only 38 of them fully paid up their 25 percent contribution to get the equipment.
Komakech said that on average, farmers are paying up between Shs 1.8 and Shs 2.2mln for the engine and solar-powered machines respectively.
Komakech, who is now worried that the district could lose Shs 1.1 billion should the rest of the interested farmers fail to pay up their 25 percent contribution, saying efforts are being made to have them pay before the financial year ends.
“This programme is a game changer especially at a time when we are experiencing drastic changes in weather patterns. Seeing us lose all that money will be very bad for us as Amuru district,” Komakech said.
Michael Lakony, the Amuru district LCV chairperson said they are engaging with commercial banks to ensure that farmers pay up the 25 percent requirement so that they get the irrigation equipment.
According to Lakony, if the farmers can get agricultural loans from commercial banks, they are given months before beginning to pay back.
In the last financial year, Amuru district lost Shs 580mln which went back to the consolidated fund after farmers failed to pay the 25 percent contribution for the irrigation equipment.
About Micro-scale Irrigation Programme
The Micro-scale Irrigation Programme supports farmers to purchase and use individual irrigation equipment. The Programme supports farmers in purchasing the irrigation equipment through a matching grant scheme, in which the cost of the equipment is co-financed by the farmer and the government.
The Programme caps the support to 2.5 acres [1 hectare], thus it is expected to benefit mainly smallholder farmers interested to transition from mainly subsistence to more commercial agriculture.
In addition, the farmer receives complementary services such as extension support in irrigated agriculture. Irrigation helps smallholder farmers grow crops all year.
Micro-scale irrigation is when a farmer irrigates a small plot. For example, a farmer can use a pump to take water from a nearby stream, and a hose to distribute the water in the plot.
https://thecooperator.news/micro-scale-irrigation-programme-amuru-farmers-turn-to-banks-for-loans/
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