Global Rice News

Rice farmers from the Mwea Irrigation Scheme have decried the increased cost of fertiliser and other farm inputs.

The high cost of production of rice has resulted in farmers seeking money from unregulated creditors to finance farming while many small-scale farmers are unable to access credit have ditched rice farming.
According to prominent rice trader Njiru Mkombozi, the farms and plots under the Mwea Irrigation Scheme still lack title deeds which make it difficult for farmers to get financial assistance from regulated banks.

“Most farmers have lease and beacon certificates which are not accepted by banks as collateral for loans. This leaves farmers at the mercy of shylocks who charge exorbitant interests,” he said.

Mr Mkombozi, a rice miller, said farmers rush to shylocks to get easier loans which accrue high interest of around 30 per cent.

“With affordable farm inputs, farmers can be able to produce rice at low cost, we are also requesting financial institutions to start accepting lease and beacon certificates as collateral so as to save farmers from the jaws of rogue unregulated creditors,” he said.

He added that some creditors are forced to harvest rice in the farms of indebted farmers who are then left with nothing from a whole crop season. Daniel Ng’ang’a, another farmer, said the completion of Thiba Dam would triple the production of rice in the scheme and urged the government to spur local production through imposing taxes on imported rice.

“The government has been giving excuses that local production of rice is not enough, and that is why they have been allowing imports which have hurt our economy greatly,” he said. “This must come to an end once the dam under construction is completed.”

Thiba dam is expected to double the production of rice from the current 114, 000 metric tonnes to 230,000 metric tonnes.

Other than lack of affordable credit, competition from rice imports and the high cost of farm inputs, snail invasion in Kenya’s largest rice scheme are some of the challenges that have forced some farmers to abandon cultivation of the crop.

Jane Wangechi, a trader at Wanguru township, said the government should expand the rice off-take programme to cover farmers outside the big cooperatives in the area.

“We feel that the government has also left us at the mercy of brokers and must make the off-take programme an annual activity,” she said.

Source: https://www.standardmedia.co.ke/farmkenya/article/2001437462/high-cost-of-inputs-leaves-mwea-rice-farmers-with-a-bitter-taste