KWANIA, November 10, 2026 – Aculawic Oil Seed Cooperative Society Limited in Kwania district has secured Shs1 billion from the Government of Uganda towards the construction of a multipurpose warehouse aimed at improving farmers’ access to markets and better prices.
The Ministry of Trade, Industry and Cooperatives [MTIC] recently disbursed the funds to the cooperative’s bank account through the Uganda Warehouse Receipt System Authority [UWRSA].
The funding is part of the Shs10.15 billion allocated to the ministry in the 2025/26 financial year to support improvements in storage facilities and metrology infrastructure across the country.
Warehouse to boost farmers’ bargaining power
Thomas Obongi, the cooperative’s Chairperson, said the warehouse would be constructed at the society’s offices in Aculawic Parish, Ayabi Subcounty.
He said the facility would enable farmers to bulk their produce and sell it collectively at better prices, instead of relying on middlemen who often buy their produce at low prices.
“The warehouse will free us from middlemen who have long exploited farmers. We will be able to bulk our produce and sell it at fair prices,” Obongi said.
How the Warehouse Receipt System works
Uganda established the Warehouse Receipt System [WRS] in 2006 under the Warehouse Receipt System Act, 2006.
The system allows farmers to store their produce in certified warehouses and receive receipts that can be used as collateral to access credit from financial institutions.
Farmers urged to embrace the system
Deborah Kyarisiime, MTIC Commissioner for the Warehouse Receipt System, urged cooperative members to embrace the system to improve their access to markets and agricultural financing.
Speaking during a recent visit to the cooperative’s offices, Kyarisiime said the system was designed to make the agricultural sector more attractive to banks and microfinance institutions.
She said the warehouse would help farmers manage price fluctuations by providing safe storage for their produce and allowing them to avoid selling during periods of low prices, particularly at harvest time.
“The warehouse will improve farmers’ ability to manage price fluctuations. It will enable them to store their produce safely, avoid selling at low prices during harvest season and wait for more favourable market conditions to maximise profits,” she said.
Aculawic Oil Seed Cooperative Society was established in 2020 as a smallholder farmers’ group before being registered as a cooperative in 2023.
Its membership has since grown from 30 to 105, while its loan portfolio has expanded to more than Shs 150 million.
https://thecooperator.news/kwania-vsla-leaders-urged-to-bank-members-savings/
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