MPs challenge Trade Ministry over cash crop pricing

Padyere County MP Isaac Otimgiw highlighted the discrepancy in cotton pricing. The Cotton Development Organisation (CDO) had set the purchase price at Shs2,300 per kilogram for the 2023 season. However, reports from Nebbi District indicate farmers are receiving as low as Shs1,300. Otimgiw urged the Ministry of Trade to explain this disparity and address the potential exploitation of farmers.

George Bhoka, representing Obongi County, echoed similar concerns. He pointed out that several cotton-growing districts in West Nile are suffering due to this low pricing, despite farmers' substantial investments. Bhoka stressed the urgency of government intervention to prevent the collapse of this sector.

Abed Bwanika (NUP, Kimaanya-Kabonera Division) proposed a legislative approach to this issue. He has prepared the Contract Farming Bill, aiming to regulate contracts and block farming in Uganda. This Bill, awaiting its first reading, is intended to address the issues raised by his colleagues.

David Bahati, State Minister for Trade, Industry and Cooperatives (Industry), attributed the fluctuating prices to the country's current free market economy system. He acknowledged the minimal government intervention in the cotton sector but promised discussions with farmers to reach a mutually agreeable solution.

Deputy Speaker Thomas Tayebwa suggested implementing a mechanism to stabilize the Uganda shilling against foreign currencies. This move aims to shield the economy from international pricing shocks, potentially benefiting the agricultural sector.