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Government to Avail Shs100b to re-stabilize maize prices

The money shall help to buy off excess maize so as to bail-out the corn prices.  Maize will not be sold at less than Shs500 under this initiative.

The government of Uganda has committed a sum of Uganda Shillings 100 billion towards re-stabilizing the maize prices.The money will be available in a weeks-time and channeled through Bank of Uganda Agriculture Credit Facility. A 15 per cent interest rate shall be levied from businessmen interested in getting the loan to buy the Maize grains from frustrated farmers.

Maize growers have been in a shock this season as the corn floated the entire market leading to price depreciation as low as 100 UGsh per kilogram.

uganda maize growers

A maize farmer standing on his harvest: Courtesy photo

Farmers claim that most of the finances used in planting and maintaining the farms are got from loans and since they have failed to get sufficient market for it, they don’t know how to recover the loans.

However, according to the finance minister, Matia Kasaija, the Shs100 billion availed by government shall help to buy off excess maize so as to bail-out the corn prices.  Maize will not be sold at less than Shs500 under this initiative.

Minister of Finance, Matia Kasaija

Minister of Finance, Matia Kasaija: Internet photo

“Funds will be accessible to all interested traders in the maize business, who have requisite storage, cleaning and drying facilities in order to allow the maize to be stored for at least six months when prices are expected to recover,” Mr Kasaija said.

Lt Gen Charles Angina, the deputy coordinator of Operation Wealth Creation (OWC) urged farmers to ensure that the grains are of high quality and attract higher prices in the near future.

 

“My appeal is that farmers put that maize on tarpaulins and when they are to harvest, they should harvest maize which is dry,” Gen Angina added.

Gen Angina also added that they are partnering with the World Food Programme to put up medium sized storage facilities of at least 300 metric tonnes across the country and so far 10 have been put in place.

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