The Government of Rwanda has intensified efforts aimed at enhancing irish potato value chain in general and regulating potato prices in particular so as to enable farmers do profit-making farming while protecting consumers.
The government has taken this new move following increased yields recorded by the farmers over the last seasons, according to officials.
Minister of State in charge of agriculture Fulgence Nengiyumva, says the good yield is attributed to enhanced advisory services and efficient use of agricultural inputs mainly fertilizers and improved seeds. These agricultural inputs have been promoted and distributed to farmers under subsidy scheme since the launch of the Crop Intensification Programme (CIP) in 2006.
As a result, explains Vincent Havugimana, the president of irish potato farmers’ federation in Rwanda, irish pototo productivity increased threefold in season 2018A thanks to the use of agricultural inputs accessed through the government subsidy; hence necessitating market regulation to ensure that farmers get fair prices to avoid any loss.
“We had to intervene to guarantee that farmers get a good price so that they go on with their business,” says Vincent Munyeshyaka, Minister of Trade and Industry. He adds that the decision to intervene in regulating potato prices is meant to ensure that farmers get at least a 25% return on their investment while protecting traders and consumers.
Since last year, representatives of irish potato farmers, traders and government officials have been holding consultative meetings meant to harmonize irish potato prices across the country. For instance, a meeting held in Musanze in December, 2017, brought together farmer representatives, traders, managers of Irish collection centers, Ministry of Trade and Industry (MINICOM), Ministry of Agriculture and Animal Resources (MINAAGRI) and Ministry of Local Government (MINALOC), among other stakeholders.
And the meeting resolved to ensure producer and consumer protection, to reduce the number of players in supply chain, to ensure reasonable profit for every player and to provide incentives for farmers for increased productivity.
According to the meeting resolutions, the potato farm gate price was set at between Rwf135 and Frw170/kg depending on the variety of the potatoes while the market price in Kigali was set at between Frw185 and Frw220/kg. The set prices should apply for the entire season countrywide.
It was also resolved that; collection centers should be owned and managed by farmers’ cooperatives, and local authorities were asked to ensure the directives are respected.
In the meanwhile, Minister of State Nsengiyumva says the government in collaboration with the private sector operators are exploring how cold rooms can be set up in order to store irish potato production longer where there is bumper produce so that the farmers can sell their commodities when the market commands good price.
“We are committed to continuously increasing agricultural productivity while enhancing the whole farming value chain” says the Minister of State.