EconomyNews

Government set aside 100bn shillings for grain dealers to buy maize

BY SAMUEL NABWIISO

Govt sets aside 100bn for the purchase of maize by private sector: Government has set aside Ugx 100bn shillings for grain dealers to buy maize from farmers at not less than 500/= per Kilogram.

Addressing the media at the Uganda  Media Center , the Minister  for Finance planning and Economic Development,  Matia Kasaijja said  government will not directly buy the maize from farmers as it was  reported by the Minister for Trade and Cooperative  Amelia Kyambadde but it will support the private sector to  buy the grain.

“Given  the low price on maize, the government  of Uganda together  with  the Bank of Uganda, the Grain Council  of Uganda  and Commercial Banks  has therefore  initiated  measures  to mop up excess maize  grain using  the Agriculture  Credit  Facility. This intervention will enable farmers across the country to sell their maize stocks at not less than Ugx 500 per kilogram” He explained.

Under the government initiative, government will avail  shillings  100 Billion  for grain  finance  through  the banking system at a maximum rate  of 15% per  annum to enable  the purchase  of grain  by any  individual  Uganda trade , members  of the grain Council of Uganda and  Cooperative  Unions  across the country.

Under the system, Commercial Banks will disburse   up to Uganda shillings 5 billion within 7 working days after receipt of eligible loan applications for loans.

Who is legible for the loan? According to the Minister   the funds will be  accessible to  all interested  traders  in maize  business  who have  the requisite storage facilities , cleaning and drying facilities  in order  to allow  the grain to be stored  for at least  6 months  when the prices  are expected  to recover.

Government’s decision to intervene comes at a time when farmers   across the country are decrying the very low prices for their maize, which have, on average, fallen to sh200 per kilo. The fall in prices is usually attributed to bumper harvests across the country.

Source: East Africa Business Week (EABW)

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