GOVERNMENT TO INJECT UGX 100 BILLION IN MAIZE MARKET
The government will inject 100 billion Shillings into the market to enable individual traders, cooperatives and the Grain Council of Uganda to purchase excess maize that has flooded the market.
The money will be availed by Bank of Uganda from the Agriculture Credit Facility and Commercial Banks and loaned to traders, members of Uganda Grain Council and cooperatives at 15 percent interest per annum who have willingness and capacity to purchase the maize from the market, according to Finance Minister Matia Kasaija.
The intervention comes on the backdrop of a fall in maize prices across the country. A kilogram of maize grain is now selling at 200 Shillings in several parts of the county.
However, under the government intervention, a kilo be purchased at not less than Uganda shilling 500.
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Kasaija says Uganda has produced about five billion tonnes of maize with only 2.5 billion tonnes consumed locally, yet the regional markets also experienced bumper harvest, leading to a drastic decline in maize prices across the country.
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Kasaija said commercial banks will disburse loans of up to five billion Shilling within 7 days. The ceiling that an applicant can get is Uganda shillings 20 billion.
The loans will only be given to interested traders with requisite drying and storage facilities that can keep maize for up to six months. The maize stock will be part of the loan collateral.