House Grants Member of Parliament (MP) Bwanika Leave to Introduce Contract Farming Bill – African Business
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Parliament granted Dr Abed Bwanika (MP Kimaanya–Kabonera Division) leave to the House to introduce Contract Farming Bill. This bill seeks to regulate block and contract farming in the country.
Contract farming is a contract between buyers and farmers that allows them to supply a particular quantity and quality of agricultural products at agreed prices and delivery dates.
In some cases, the buyer supports the farmers in preparation and other farming operations including providing farm inputs and offering technological advice.
Bwanika, who presented the motion during the plenary Tuesday, August 23, 2022, stated that the bill also seeks to establish a legal framework for the execution of transactions relating future agricultural produce sales at mutually agreed prices, and the supply of farm services between a farmer, and a third party.
It also seeks the definition of a farming agreement. This governs the execution of block farming arrangements between landowners. This regulates the sale, payment, delivery and pricing of agricultural products.
Bwanika stated that farmers are at great risk of price fluctuations. The bill will help to mitigate those risks and help farmers negotiate the best prices for their products with buyers.
“It will help the farmers to minimise post-harvest losses since the farmers will be connected directly to the buyers, so the question of them looking for where to keep their product doesn’t arise and that will help the farmers to get other benefits from Agriculture as an economic enterprise,” Bwanika said.
He also stated that buyers will benefit equally from the law, as they will be able connect with farmers directly, negotiate the best price, and plan for the market. He also stated that the bill will allow block farming to solve the problem of land fragmentation.
“Block farming will help farmers benefit from individual experiences of the farmers when they do farming together. Contract and block farming will help to improve the environment under which the farmers will produce, it will help farmers access markets and it will also help the farmers to benefit from the Parish development model,” he said.
Hon. Stella Apolot (Woman MP for Ngora District) who supported the proposal to introduce this bill stated that contract farming is currently restricted to plantation crops such as tea and sugarcane. She claims that the small-scale farmers’ profit margins will be increased and their revenue will be better.
“It will also promote good quality end products since both the stakeholders have equal interest for the success in terms of production and processing. Directly contracting with buyers will increase competition leading to higher prices for the farm produce hence their increased income,” she said.
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“The farmers are assured of the market once the product is ready. The farmer and the buyer also have security since they are assured of purchase and supply,” she said.
Thomas Tayebwa (Deputy Speaker of Parliament) asked Bwanika to meet the requirement regarding the financial implications of the bill. He said that the MPs should engage in dialogue with ministries, departments and agencies about the necessity of the bill before they introduce a proposal.
Distributed by APO Group, on behalf of Parliament of Uganda
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Source: african.business
