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Rice in Uganda: Supporting producers but penalizing consumers

Year of publication 2013

Author Agriculture and Economic Development Analysis Division

Product type Document

Edition 1

Synopsis (short abstract) MAFAP analysis shows that both rice farmers and wholesalers receive higher prices for their produce than they would obtain without existing policies and that they have benefited from direct protection

Language English

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    Agriculture is a prominent sector for the United Republic of Tanzania’s economic development, contributing around 24 percent of GDP, and employing 65 percent of the working population. In this context, rice is the second most important crop in the country, and is mostly grown by farmers as a cash crop for local and regional markets. However, farmers have difficulty accessing important extension, storage and financial services, which would enable their inclusion in the growing agricultural markets. The challenges to access these and other services are even greater for women and youth smallholder farmers, who lack ownership of major means of production, such as land. Against this background, the project aimed to increase rice value chain competitiveness and reduce post harvest losses in Iringa region, by improving managerial capacity, creating sustainable rice value chains with public private partnerships, and enhancing post harvest handling, storage and management, among other things.
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    Rice and fish are one of the main sources of nourishment and income for many people around the world. Standing water in rice fields promotes the development of a teeming ecosystem with aquatic life such as fish, where fish are grown concurrently or alternately with rice. This system called ‘Rice-Fish Culture System’ offers many social, economic and environmental benefits. Farmers can increase their income because the rice yield is higher, and an additional income is generated from the fish sales. Environmentally, with this practice farmers save on fertilizers and pesticides because fish eat insects maintaining a perfect ecological balance that improves biodiversity. The TECA Platform contains a wide range of practices that promote field practices from different parts of the world. All practices have been tested by farmers on their farms for several years with positive results.
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    Booklet
    Analysis of incentives and disincentives for rice in Uganda for the time period 2005-2011 2012
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    This technical note is an attempt to describe the market incentives and disincentives for rice in Uganda. For this purpose, yearly averages of farm gate and wholesale prices are compared with reference prices calculated on the basis of the price of the commodity in the international market. The price gaps between the reference prices and the prices along the value chain indicate to which extent incentives (positive gaps) or disincentives (negative gaps) are present at farm gate and wholesale lev el. In relative terms, the price gaps are expressed as Nominal Rates of Protection. These key indicators are used by MAFAP to highlight the effects of policy and market development gaps on prices. The note starts with a brief review of the production, consumption, trade and policies affecting the commodity and then provides a detailed description of how the key components of the price analysis have been obtained. The MAFAP indicators are then calculated with these data and interpreted in the lig ht of existing policies and market characteristics. The analysis that has been carried out is commodity and country specific and covers the period 2005-2011. The indicators have been calculated using available data from different sources for this period and are described in Chapter 3. The outcomes of this analysis can be used by those stakeholders involved in policy-making for the food and agricultural sector. They can also serve as input for evidence-based policy dialogue at country or regional level. This technical note is not to be interpreted as an analysis of the value chain or detailed description of production, consumption or trade patterns. All information related to these areas is presented merely to provide background on the commodity under review, help understand major trends and facilitate the interpretation of the indicators. All information is preliminary and still subject to review and validation.
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