The Ministry of Agriculture, this week, announced initiatives to set up storage facilities to cater for surplus produce.
Whenever there is a bumper harvest, a lot of produce goes to waste, or is sold at extremely low prices. Once this happens, farmers incur heavy losses, despite their enormous efforts to increase production.
And, during non harvest seasons, there is shortage of food to cater for the population. It is very important for those in the agricultural business to be assured that their investment is secure, and there is no better way to affirm this than introducing an efficient storage system.
Additionally, the government continues to supports efforts to boost the agricultural sector, through provision of fertilizers, seeds and other farming inputs at subsidized prices – initiatives that have contributed to enormous harvest - thus the storage facilities come at the right time.
Such policies will not only guarantee food security for make Rwanda, but also make the Agricultural sector a viable and attractive area of investment.
There have been concerns that financial institutions have been reluctant to fund agricultural projects, for fear of profits not being guaranteed, due to price fluctuations caused by excess produce.
However, with initiatives such as these, prices on the market can be controlled and projected profits achieved.