Bills for inputs, which are largely imported, have climbed, forcing some to spend on limited volumes
Consumtion of locally produced and imported products have reduced drastically due to on and off lockdown and strict containment measures that have been put in place by the government across the country
Despite facilitation rendered to the agriculture sector players to carry on activities unimpeded by recurrent Covid-19 protocols including allowing movements of produce across the country, many are reeling under low profit and yields amid rising production costs.
Farmers who spoke to Rwanda Today decried that bills for inputs, which are largely imported, have climbed, forcing some to spend on limited volumes or many using none altogether at the expense of productivity.
This is particularly the case for many youth agribusiness projects which bear the additional burden of accessing land, finance and markets.
For many, costs for hiring machinery, chemicals, fuel, and fertilisers have gone way up after Covid-19 disrupted the flow of goods in and out of the country, in addition to costs accrued as a result of the appreciation of the dollar while importing.
Emmanuel Ndayizigiye, the agri-entrepreneur with a firm involved in selling mechanisation-based services told Rwanda Today the tractors they used to import from countries like China and India at $3,500 to $4,000 inclusive of shipping costs last year have increased in costs to more than $6,000.
Additionally, one is subjected to delays linked to uncertainties surrounding market supply logistics.
“The implications are that now if we were charging Rwf150,000 to work on hectares, it has increased to Rwf190,000 considering that everything else including fuel has gone up,” he told Rwanda Today.
Dieudonne Niyodushima, who runs Exodus Farm Ltd involved in the cultivation and distribution of French beans, fruits and vegetables said the high cost of production linked to limitations around input supply and affordability left many farmers grappling with low productivity.
To this adds the fact that even profitability for those who manage to spend on expensive inputs has taken a hit from the pandemic with new and existing clients only taking reduced volumes.
“Prevailing uncertainties following on-and-off closures of economic activities are making clients to take little.
Those who require five tonnes are only asking for one tonne and this is happening both locally on the export market,” he said.