Rwanda is faced with oversupply of some food and an acute scarcity of others, a situation industry players say has placed them in a catch-22 situation.

For instance, while there is plenty of maize in the country, some millers are importing the grain and Irish potatoes.

Irish potatoes, which is a must have on the dining tables of many Rwandans, is imported from Uganda and Democratic Republic of Congo.

Early this month, prices of Irish potatoes suddenly increased from Rwf350 to Rwf500 owing to recent heavy rains that swept the farmlands in the northern and western provinces.

Dealers in Nyabugogo told Rwanda Today that since July, they have been importing Irish potatoes from as far as Busia in eastern Uganda and Goma in Democratic Republic of Congo.

“In Congo we purchase in US Dollars then add taxes and transport costs. I think the government should tell its citizens they will not get Irish potatoes at Rwf260,” a businesswoman running a depot at Kumashyirahamwe told Rwanda Today. Some officials speaking on condition of anonymity said apart from a bad season “there are a lot of issues in the government’s attempts to regulate prices of Irish potatoes.”

Dealers in Nyabugogo told Rwanda Today that since July, they have been importing Irish potatoes from as far as Busia in eastern Uganda and Goma in Democratic Republic of Congo.

“In Congo we purchase in US Dollars then add taxes and transport costs. I think the government should tell its citizens they will not get Irish potatoes at Rwf260,” a businesswoman running a depot at Kumashyirahamwe told Rwanda Today.

Some officials speaking on condition of anonymity said apart from a bad season “there are a lot of issues in the government’s attempts to regulate prices of Irish potatoes.”

Confusion

But director general of Agriculture Development Dr Charles Murekezi ruled out confusion in the pricing of the commodity.

“A team made up of officials from Ministries of Agriculture and Commerce and Co-operatives sit and determine production costs by the farmer and his margin then set a minimum price.

“The aim is to ensure the produce is affordable to the final consumer while no one is making losses along the chain,” Dr Murenzi told Rwanda Today.

While farmers in the northern and western parts of the country are experiencing shortage, their counterparts in the eastern part are stuck with tonnes of maize they cannot find market for.

Since July, prices of maize dropped from Rwf200 to Rwf100 per kilogramme at the farm, which officials say is a result of bumper harvests not only in Rwanda but the whole of East Africa region.

The prices are below those set by the federation of maize farmers and the government in March. The price was set between Rwf193 and Rwf210 per Kilogramme at the farm gate.

At the beginning of a season, the government officials said, some farmers enter into agreements with millers who even give them inputs, but after harvest the farmers run away from their obligations for better prices elsewhere.

“I know of some farmers who are doing business with Africa Improved Foods were not affected. This business of running away from contracts must stop,” Dr Murekezi.

However, president of Rwanda Federation of Maize Growers’ Cooperatives Evariste Tugirinshuti refuted the claims, saying all the produce of the last season cannot be sold to Africa Improved Foods.

He said the miller took in 100,000 tonnes of maize, which represents 40 per cent of the total production. This, he said, forced farmers to sell their produce to informal market at low prices.

An official at PRODEV, a subsidiary of Minimex Group and one of the largest milling companies located in Rwamagana said the miller is buying a kilogramme of maize at Rwf165.

The ministry of Trade and Industry has been regulating the prices of some of the staple food crops such as Irish potatoes and maize, saying the intention is to protect farmers from losses.

Processing centres

For instance, in efforts to tackle the problem of post-harvest for key crops, the government introduced the Community Processing Centres.

Under this policy, local processing plants such Nyabihu Potatoe Company, a chips processing plant, which collapsed after its produce failed to find market were established.

“If the farmers claim there is no market for their maize, they are either not in co-operatives or cooperatives are yet to notify us about the available produce to link it to the market,” said Robert Opirah, director general of Trade and Investment at the Ministry of Trade.

Dr Murenzi noted that East Africa region has the same ecosystem that good maize harvests results in the fall of prices.

National Institute of Statistics of Rwanda do not show much increase in maize production in Rwanda.

The agency said the country produced 283,519 MT, 295,385 MT, 300,330 and 218,179 MT in 2014, 2015 2016 and 2017 respectively.

But officials say carryover stocks from past years coupled with improved harvests of last season and farmers, who are yet to stick to agreements they enter into with millers or bulk buyers have led to sharp declines in maize prices.