Rice Distribution

Rice Distribution (Import & Export)

Shardi Trading & Logistics works with the farmers, millers and other traders. Rice is the second revenue-generating crop in the world and we aim to promote and improve the rice business in Uganda. Initially, Uganda was depending on imported rice, to feed the population, because of low production. Between 2007-2008 Uganda could produce about 170,000 metric tons of rice but the Ugandan market needed about 380,000 metric tons of rice. This is the time when the RBSA started to spread the gospel to the farmers across the nation that rice-growing can solve the problem of food shortage and poverty alleviation at the same time. As a result of this campaign, Uganda has gone from producing 170,000 metric tons to 220,000 metric tons. The rice business sector association also aims at protecting the local farmers from competition from imported rice.

Rice Farmers training

The majority of districts in Uganda are knowm for rich wetlands and farmlands. Local farmers make use of certain areas in this vast wetlands as fishponds during the rainy season and rice fields during the dry season. Since rice production is possible only once a year, the farmers must efficiently use their resources. However, based on the training needs survey conducted by our associations, most of rice farmers were applying high amounts of chemical fertilizers and pesticides. These practices results to high cost of production and may contribute to water pollution negatively affecting the biodiversity in the area. The Training participants with the organizer and partners To address this, conducted a Sustainable Agricultural Practices: Rice Production Training for the local farmers. The training aimed to create ways of upgrading farmers’ awareness and understanding on the impact of climate change and learn how to adapt and reduce vulnerability and at the same time, acquire knowledge on rice farming. This was held on 5-7 September 2018. Prior to the training, a Training Needs Assessment was conducted on 06 July 2018 to ascertain the level of knowledge and practice of the farmers in relation to the crops they are currently cultivating. A total of twenty (20) farmers who are members of Farmers Association, and representative from the Municipal Agriculture Office participated in the training.

Typology and number of Rice Farmers, Processor and Traders

About 80% of rice farmers in Uganda are small scale farmers with acreage of less than 2 hectares using simple technologies including use of rudimentary tools, little or no fertilizer use, poor quality seed, with little or no irrigation and poor water management practices among others.
About 15 % Medium scale farmers with acreage of 2 – 6hectares producing rice most of which using practices similar to small scale farmers and a few using non-motorized tools such as line markers. The major difference between medium and small scale is the acreage. About 5% rice farmers are large scale with land under cultivation over 6 hectares. Among the large scale farmers are rice schemes with acreage of over 1,000 hectares.
Currently there are 591 operational rice mills. The rudimentary poor performing engelbergs account for 77.5%, milltops constitute 20.8% and medium to large scale are 1.7%. The small rice milling cottage factories using engelbergs and milltops mill 95% of the paddy produced in the country significantly contributing to persistent low quality and market value which is non- competition in the current liberated market economy. Trading of rice in Uganda is completely under the private sector. Most of the trading is done by middle men who buy threshed rice from the farmers at the farm. The price of rice varies from place to place between UShs.1500= per kg to UShs. 2,500= per kg of locally produced rice. This rice is usually packed in 50 and 100kg bags. Some medium and large scale processors however process, package and brand their rice thereby fetching higher market prices ranging from UShs. 2500= to UShs 7500= per Kg.

Gender and Youth Dimensions of Rice Production, Processing and Trading

Women play a major role in rice production in the country including, field opening, planting, weeding, harvesting, bird scaring and other agronomic activities on farm processing and marketing. Sometimes due to gender imbalance, the proceeds from rice sales do not trickle down to the women who have labored in the production process. Youth are less involved in rice production and this causes a danger to future production and food security. Most of the youth prefer to seek jobs in urban areas.

Comparative Advantage of Domestic Rice Production

Domestic rice production is increasing and local and regional demand is also increasing. The current demand for rice in Uganda is over 225,000metric tonnes of which only 165,000metric tones are locally produced creating a deficit of 60,000MT. East African countries (Rwanda, Kenya, Tanzania, Uganda and Burundi) import over 700,000 metric tonnes of rice per year. Rice production would therefore provide an import substitution of about $150 million worth of rice every year to Uganda if it can double its production. This covers for only 15% of rice imports in East Africa.