Since last year, the Government has stopped setting prices for agricultural produce — a major policy shift that now leaves price negotiations entirely to farmers and buyers. Officials say the move is part of broader efforts to liberalise agricultural markets, strengthen competitiveness, and empower farmers to make independent business decisions based on market demand. ALSO READ: Govt raises maize prices to offset farmers’ losses Minister of Trade and Industry Prudence Sebahizi confirmed the development in an interview with The New Times on October 7. “For now, farmers and buyers meet and negotiate the price they find fair,” he said. Previously, the government set minimum prices for staple crops such as maize, beans, and Irish potatoes to protect farmers from exploitation and ensure stable income. Under the new approach, prices are determined by market forces meaning value depends on availability, demand, and quality rather than a fixed government rate. Farmers’ frustrations with fixed prices The shift followed years of complaints from farmers who said the government-determined prices did not reflect the true value of their produce. During a recent parliamentary session, MP Alice Muzana, Chairperson of the parliamentary committee on land, agriculture, livestock, and environment, acknowledged that the old system had created widespread dissatisfaction. ALSO READ: Agric minister backs farmers' supply contracts as loan collateral “When the government was fixing prices, many farmers felt the set rates did not match the real value of their produce,” Muzana told the Chamber. She said the liberalisation was not a sudden move but part of a gradual plan to make the agriculture sector more responsive to market realities. The government, she noted, is also exploring mechanisms to help farmers operate under the new model, including the use of the East Africa Exchange (EAX) and the establishment of more modern storage facilities. “There is a plan to create storage hubs so that farmers with perishable produce can store it safely and sell when prices are favorable,” Muzana said. “We also want to strengthen price information systems across districts so farmers can sell where the market is best.” Farmers welcome the change For Jean Paul Munyakazi, Legal Representative of Imbaraga Farmers’ Organisation which brings together more than 32,000 members, the liberalisation policy is a welcome step that has given farmers more control over their produce and income. “This change has benefited farmers greatly because they now sell freely,” he said. He explained that while maize still has a baseline reference price, final rates are now set through negotiation between farmers and buyers. This flexibility, he added, has eliminated rigidities that previously discouraged production. ALSO READ: Govt repeals coffee zoning policy “One major improvement is that the zoning policy was removed. Farmers can now sell their produce anywhere they want. Before, you couldn’t move produce from one province to another — it was prohibited,” Munyakazi said. The removal of such restrictions has also opened Rwanda’s markets to regional trade. “Today, a buyer from Uganda can come to Rwanda to purchase maize or beans, or we can export directly. Farmers are free to sell to anyone,” he said. However, Munyakazi cautioned that access to finance remains a major bottleneck. “When it is time to sell, many farmers have already run out of cash. This makes them desperate and vulnerable to middlemen who exploit them with low prices,” he said. “If a credit guarantee fund existed, farmers could borrow money and wait to sell when market prices improve.” Coffee sector liberalisation The new market approach is not limited to food crops. The coffee sector, one of Rwanda’s top exports has also undergone similar reforms. According to Ernest Nshimiyimana, Managing Director of Dukundekawa Cooperative in Ruli, Gakenke District, liberalisation has improved competition and quality. ALSO READ: Rising prices offer Rwanda’s coffee sector a boost “Previously, there was a zoning policy where each coffee washing station was assigned a specific area and only farmers from that zone could supply it,” Nshimiyimana said. “Now, with the introduction of farm-gate pricing and the removal of zoning, factories can buy coffee cherries from anywhere. This competition benefits both farmers and factories because it encourages better prices and quality coffee.” He added that the change has allowed cooperatives to source beans more efficiently, respond to market trends faster, and build stronger partnerships with international buyers. Farmers’ experiences on the ground For Evariste Tugirinshuti, a beans and maize farmer from Kigarama Sector, Kirehe District, liberalization has brought both relief and responsibility. “Before, farmers who were not part of cooperatives or who lacked contracts with EAX found it very hard to sell their produce. Some even resorted to smuggling,” he said. “Now, negotiating directly with buyers gives us freedom and transparency.” He said prices have become more competitive. “Currently, a kilogram of maize sells between Rwf 400 and Rwf 500, while beans range between Rwf 800 and Rwf 1,000,” he said. Economists urge balance Economist Richard Karasira, based in Bugesera District, said the government’s withdrawal from price regulation has both benefits and risks. “Government policies can affect commodity prices through production and distribution regulations. While necessary for safety and quality, such measures often raise production costs, which are passed on to consumers,” he said. Karasira explained that liberalisation tends to favor consumers through lower prices but can expose farmers to market volatility. “When governments relax production measures or liberalise markets, prices may drop due to competition, which helps consumers but can hurt farmers if safeguards like credit access and storage are not in place,” he said. As Rwanda’s agricultural sector adjusts to this new era of free pricing, experts say the next challenge is building systems that protect farmers from market shocks while sustaining competitiveness. For now, farmers seem to welcome the flexibility but their long-term success will depend on how effectively they can organise, access finance, and respond to changing market signals.
