KAMPALA, November 20, 2023 – Government has developed a Cabinet Paper that will establish a policy to reenergise the tea business in Uganda, according to Prime Minister, Robinah Nabbanja.
“We have held four meetings so far to organise this cabinet paper so that government can come up with a rescue plan for our farmers,” she said during a plenary sitting held days ago.
Nabbanjja said the price of Ugandan tea is low compared to other East African countries, because farmers do not apply fertilizers, something she said lowers the quality of tea.
While presenting farmers’ concerns on low prices of tea, Ephraim Biraaro, Buhweju West County MP noted that by 2023, Uganda was receiving US$ 0.71 per kilogramme at the auction market in Mombasa, compared to Rwanda’s US$ 3.15 and Kenya’s US$ 2.22 per kilogramme.
“The situation in Uganda is as a result of lack of a tea policy and regulation of the industry. Government should immediately pay attention to the plight of tea farmers with regard to the price cuts at the garden,” Biraaro said.
He added that garden-to-factory prices had dropped from Shs 700 per kilogramme to Shs 200 per kilogramme.
Bushenyi District Woman MP, Annet Katusiime, said farmers are unable to afford the high prices of fertilisers and pesticides.
“There are also fake fertilisers on the market which are compromising the quality of our tea. Government should intervene on this,” she said.
Katusiime also called on government to temporarily lower electricity tariffs to enable tea processing factories effectively meet production expenses.
Nabbanja said there are actions being taken to support tea farmers and the factories involved in processing tea.
“The cabinet paper we have drafted is a short term effort. In the medium term, government will come up with subsidies on fertilisers so that farmers can ensure high quality of the tea they are growing,” she said.
The Minister for Local Government, Raphael Magyezi, noted that the Shs 200 paid to a farmer per kilogramme of tea is shared with workers who pluck the tea leaves, and thus disadvantages farmers in meeting costs.
He said that the policy in the offing will go a long way in improving the tea growing in the country.
“The President [Museveni] directed us on this and we are ready. The comprehensive paper will address issues of the farmers, the processors and other stakeholders. We shall come back to the House and explain the measures cabinet will prescribe,” Magyezi said.
https://thecooperator.news/tea-farmers-in-bushenyi-decry-low-prices-call-for-tax-holiday/
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